One of Alberta’s largest home builders has been placed in receivership by an Edmonton court.
Alvarez & Marsal Canada says in a posting on its website that it was named Thursday as receiver for insolvent ReidBuilt Homes and several subsidiaries by the Court of Queen’s Bench of Alberta.
READ MORE: Liens piling up as ReidBuilt Homes struggles to pay contractors
The company’s failure comes as Alberta recovers from an oil price-induced slump that led to concerns about “imbalances around overbuilding,” according to Richard Cho, principal of market analysis for Calgary at Canadian Mortgage and Housing Corp.
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CMHC statistics show the inventory of built but not occupied new housing units reached a record high of 4,397 last March. Cho said they fell to 4,039 in September as the Alberta economy gradually improved over the summer.
READ MORE: CMHC voices ‘growing concern’ about overbuilding of homes in Edmonton
Documents filed in court by Royal Bank show that ReidBuilt owes more than $64 million and Emilie Reid, wife of founder Art Reid, who died in 2009, owes the bank $2 million. The company did not respond to a request for comment.
Watch below: Global News video coverage from October on troubles facing ReidBuilt Homes
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