Judge blocks RBC’s bid to bankrupt assets of two construction brothers, but issues bust of company holding major Coquitlam industrial property

A B.C. Supreme Court judge has dismissed the RBC’s attempt to push two Smith family holding companies into bankruptcy, but granted an application to bankrupt a third company holding a 6.6 acre property in Mayfair Industrial Park.

In a ruling issued on Dec. 23, 2025, Justice Michael Stephens concluded RBC failed to meet the Bankruptcy and Insolvency Act test needed to obtain orders against Bastian Holdings Ltd. and Krystle Holdings Ltd. – owned by Craig and Kyle Smith, respectively.

Through these holding companies, the brothers own Whitewater Concrete and Whitewater Development, as well as a series of related companies, which have been subject to receivership orders.

On July 2, 2024, RBC filed three applications after winning judgments of more than $1 million against each personal holding company, and $11.6 million against the company holding the industrial property on 145 Golden Dr., which served as the head office for Whitewater Concrete.

The brothers did not oppose the application against the Coquitlam property, which was sold in May by a court-appointed receiver for $21.2 million after a marketing process that attracted multiple bids, including interest from the City of Coquitlam.

Most of that money was paid to the primary secured lender, Business Development Bank of Canada, which held a first mortgage on the property.

But RBC, which held secondary security and guarantees linked to related companies, was also owed money under earlier court judgments

One key issue in the case was whether the brothers, as directors of the companies, were allowed to instruct lawyers, given that they were declared personally bankrupt in a separate decision that is currently under appeal.

RBC argued the Smiths were legally disqualified from acting as directors, but the judge disagreed, finding the rule was stayed by the appeal.

Stephens ruled that RBC had failed to prove to the “sound and convincing” standard required that the brothers’ personal holding companies had stopped paying their debts in general – not just to one creditor – within the six months before the application was filed.

He said RBC needed to prove they had also failed to pay a second creditor within the relevant period.

RBC argued a second unpaid liability existed through a mortgage connected to a Maple Ridge industrial property on Lougheed Highway, but the judge said the evidence did not clearly show that mortgage payments had gone unpaid by June 6, 2025, when RBC filed its applications.

The court also noted there were ongoing discussions with the mortgage lender and no direct evidence from that lender confirming a default before the filing date.

Because bankruptcy is a serious and final remedy, Stephens said RBC had to prove its case clearly – and it did not meet that standard for Bastian and Krystle.

The situation was different for 145 Golden Drive Ltd.

In addition to the large judgment owed to RBC, the receiver reported that 145 Golden had other unpaid debts, including $26,729 owed in taxes to the Canada Revenue Agency, and about $8.6 million owed to unsecured creditors.

Based on that evidence, Justice Stephens ruled the company had clearly stopped paying its debts and ordered it into bankruptcy. BDO Canada Limited was appointed as trustee.

With 145 Golden Drive Ltd. now declared bankrupt, any remaining assets or claims will be handled through the bankruptcy process under court supervision. The applications against the brothers’ holding companies have been dismissed.