Langley Townhouse Project (BC) in Receivership, Owes Nearly $40 Million

Langley Townhouse Project in Receivership, Owes Nearly $40 Million at a Glance

A townhouse project in Langley, British Columbia, known as The Willoughby, has been put into receivership after owing creditors more than CAD39.9m ($30.5m). The project was being built by Quarry Rock Developments and was partly built with a few townhouses finished and others in various stages of completion. MNP Ltd., the receiver, is winterizing the project to protect the partially built townhouses from the weather and will assess whether to complete the construction of existing homes or sell them as is. Five creditors have been listed, including four mortgage holders on the project.

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The Information about Langley Townhouse Project in Receivership, Owes Nearly $40 Million

The new development project at 204 Street has stopped its development.

A townhouse development project in Langley, consisting of 87 units, is currently in receivership, meaning it owes creditors over $39.9 million, according to court documents.

The project, called The Willoughby, is located on 70A Avenue in Langley, specifically on the Willoughby Slope. It was taken over by receivers on November 8, 2023, as ordered by B.C. Supreme Court Justice Joel Groves under the Bankruptcy and Insolvency Act. When a development project is put into receivership, a court-appointed receiver will try to either finish the project or sell it to repay the creditors who have not been paid.

The receiver for this project is MNP Ltd., who has submitted documents listing five creditors. These creditors include four mortgage holders on the project: MCAP Financial Corporation, which claims to be owed $29.6 million, Canadian Mortgage Servicing Corporation, claiming $7.5 million, and Steelcrest Construction, which has a builders lien on the development for more than $2.8 million. Two other creditors hold mortgages on the project, but their claimed amounts are listed as “unknown” in the receivership filing.

The first phase of the project has been partially built, with a few townhouses completed and others in various stages of completion. Currently, MNP is taking steps to protect the partially built townhouses from the weather.

Next, the MNP will assess the project and determine whether to complete the construction of the existing homes or sell them as they are. The recommendations will then be presented to the court, most likely in late January or early February.

Attempts to reach Quarry Rock Developments (QRD), the developer of the project, for comment, were unsuccessful as their office was closed during the holidays.

In addition, QRD is facing another creditor’s court action over a nearby property on 204 Street (a 1.2-acre lot in the 7000 block of 204 Street). Canadian Western Trust Company has filed a petition with the B.C. courts to foreclose on the property due to a $6 million loan to another QRD holding company. QRD’s lawyers have responded, stating that the total developed value of that property and two adjacent properties will be $230 million, suggesting that there is enough equity in the subject property to pay off the mortgage.

It is important to note that none of the claims mentioned in the filed documents have been proven in court.

Wrap Up

A townhouse project in Langley, known as The Willoughby, has been placed in receivership after owing creditors over $39.9 million, according to court documents. The project was being developed by Quarry Rock Developments (QRD) and is located on the Willoughby Slope. The receiver, MNP Ltd., has listed five creditors, including several mortgage holders on the project. Phase one of the project is partially built, and MNP is currently winterizing the development to protect it from the weather. MNP will assess whether to complete the construction or sell the project as is and make recommendations to the court in late January or early February. QRD is also facing a separate creditor’s court action over another nearby property.

Langley Townhouse Project (BC) in Receivership, Owes Nearly $40 Million Chinese Version