Port Moody’s massive Portwood development enters bankruptcy protection

Edgar Development’s massive Portwood project in Port Moody has entered formal bankruptcy protection, with the unfinished portions of the 23-acre project now headed for a court-supervised sale as its developers grapple with more than $100 million in debt.

On Aug. 14, BC Supreme Court granted creditor protection to four companies associated with phases 3, 4 and 5 of the Portwood redevelopment.

The move comes about a month after companies affiliated with Woodbourne Canada Management Inc. went to court seeking to put the same properties into receivership after two previous attempts to sell the lands failed. As previously reported by the Dispatch, the lenders alleged the developers had defaulted on more than $122 million in senior secured debt after the loan matured in April 2025.

Instead of seeking a receivership, the companies ultimately changed course and pursued Companies’ Creditors Arrangement Act (CCAA) proceedings, a process typically used to allow insolvent companies to restructure their affairs under court supervision.

According to court documents, one reason for the change was the unusual ownership structure of the project. A company holding legal title to the lands involved in the creditor proceedings also holds title to the separately owned Phase 2 lands, potentially creating complications for purchasers of homes in that phase if the titleholder were placed into receivership.

Accounting firm, PricewaterhouseCoopers (PwC), was appointed to oversee those parts of the project, with broad powers to manage the properties and prepare them for sale. The court also approved up to $500,000 in temporary financing.

The sale will use a “stalking horse” offer, meaning an initial bid will set a floor for the sale while other buyers are given an opportunity to make better offers.

The CCAA proceedings apply only to phases 3 through 5 of Portwood. Phase 1 and Phase 2 – the latter being a 219-home strata project, dubbed Umbra, still under construction – are not included.

PwC said the court order includes measures aimed at allowing construction of Umbra to continue, including work needed to obtain occupancy permits. Buyers are being told to continue dealing with Edgar Development and its existing sales and customer care teams.

The proceedings also include existing Woodland Park rental townhomes located on the lands planned for later phases.

PwC said the creditor protection does not cancel existing tenancy agreements or give the landlord the right to evict tenants. It does not currently expect tenants to be directly affected, and residents should continue paying rent and dealing with the existing property manager.

Woodbourne and Edgar Development bought the property in 2018 and planned to replace the aging townhouses with a multi-phase community containing thousands of new homes.

The financial trouble became public this summer when Woodbourne-affiliated lenders asked the court to appoint a receiver over the remaining development lands.

Instead, the companies behind the later phases are now proceeding under the CCAA, which gives financially troubled companies protection from creditors while their affairs are dealt with under court supervision.

On Aug. 24, the court approved the sale process and an amended order governing the proceedings. PwC is expected to begin seeking buyers for the remaining development lands immediately.