Reid-Built bankruptcy impacts City, Chamber
Thursday, Nov 23, 2017 06:00 am
Thousands of homeowners who chose Reid-Built Homes Limited to build their new homes have been left out in the cold after news the company has gone into receivership.
In a statement on Alverez & Marsal Canada’s website Nov. 2, the company noted it had been named as Receiver for Reid-Built.
According to the list of creditors on the Receiver’s website, Reid-Built and its subsidiaries owe approximately $243 million to various creditors, including banks, municipalities, homebuilders, contractors and homeowners. The City of Airdrie is one of those municipalities and is owed $73,334, according to the list.
“There’s a whole legal process that will come into play now, so at this point we haven’t even received official notice. I suspect now that the creditor list is out we’ll be receiving that notice within the next little while,” said Sharon Pollyck, director of the City’s chief administrative officer’s office.
“Being a secured creditor…. I think we’d be in pretty good shape (to get that money back). We are a secured creditor, which is good for us and good for our taxpayers. We’ll just have to wait and see how things play out.”
On Oct. 6, Lisa Reid-Parker, president and CEO of Reid-Built Homes Limited, and Greg Pollard, vice president of finance, sent a letter to its various contractors admitting it did not have the funds to pay them.
“We recognize that many, if not most of you, have unpaid invoices for work previously provided,” Reid-Parker and Pollard said in the letter obtained by the Airdrie City View, “Unfortunately, the company does not currently have the funding to repay these outstanding liabilities.”
The letter said “difficult economic conditions in Alberta” are the cause of the company’s woes.
The Airdrie Chamber of Commerce is also on the list of creditors. According to Lorna Hunt, executive director, Reid-Built owes the Chamber $10,920 for advertising.
According to Pollyck, the City’s Building Inspections department has received a few calls – less than five – related to Reid-Built; however most of these have been from “people interested in picking up a Reid-Built Home that is already under construction.” Pollyck said the City is unable to answer these kinds of questions and has referred callers back to Reid-Built and the Receiver.
Individuals who have built with Reid-Built or have paid a deposit on a new home have some recourse through the Alberta New Home Warranty Program (ANHWP) and the New Home Warranty Insurance (Canada) Corporation (NHWIC).
According to information posted on the ANHWP website, homeowners are urged to review their policies carefully to determine what – if anything – is covered, as well as refer to the Government of Alberta’s Construction Performance Guide for New Home Warranty at municipalaffairs.alberta.ca/home_warranties_performance_guide
The Receiver and NHWIC are working collaboratively to try and address questions and concerns surrounding warranty coverage on a timely basis.
Reid-Built did not respond to a request for comment.