One of Alberta's largest homebuilders falls into receivership
Royal Bank of Canada sought to collect more than $64.6 million from ReidBuilt Homes
One of Alberta's largest homebuilders lost its battle to restructure its debt Thursday and fell into receivership after the Royal Bank of Canada sought to collect more than $64.6 million.
An Edmonton judge granted a consent order that will allow a receiver — Alvarez & Marsal Canada — to take control of the assets of several companies associated with ReidBuilt Homes, including ReidBuilt Homes Calgary, and Builder's Direct Supply.
The judge also granted an order that will allow the receiver to complete pending home sales and finish construction of houses.
Court documents don't show how many homes are affected by the company's financial woes. A lawyer familiar with the case, who spoke on condition of anonymity, said the deposits of homebuyers are protected.
A lawyer for the company declined comment.
ReidBuilt Worldwide, the parent company, had been struggling for months.
Last month, Postmedia reported the company was attempting to sell its Calgary division, and had stopped construction on dozens of houses. Several media outlets also reported that some contractors had not been paid.
The company's website says ReidBuilt was founded in Edmonton in 1982 by Arthur Reid.
The company grew rapidly, at one point building more than 500 homes a year while branching out across Western Canada and the United States. The company says it built and marketed more than a dozen residential communities and multi-family developments.