The owner of the yet-to-be built Atmosphere complex on No. 3 Road – an 800-unit housing development - has applied for creditor protection to restructure its business.
The project was halted more than a year ago after which its building permits expired, leaving a hole in the ground across the road from Lansdowne Shopping Centre.
According to the owner, Alderbridge Way LP, the construction lender suspended funding early in the COVID-19 pandemic.
Alderbridge Way LP applied on Friday to the Supreme Court of B.C. for protection under the Companies’ Creditors Arrangement Act, which would allow for restructuring of its business affairs, rather than having to declare bankruptcy.
Under court supervision, the owner would then either figure out a way to move forward with the project or find a buyer.
The development plan includes an office tower and six residential towers with 824 units of housing, of which 112 will be market rentals and 38 affordable rental units.
In a statement sent to the Richmond News, Alderbridge Way LP said it wants to assure presale buyers their deposits are being held in trust and are protected, adding their priority is to maintain the contracts and advance the project.
“It is disappointing that we reached this point, and we understand and apologize for the frustration this has caused to people who have pre-purchased strata units and invested in Atmosphere,” the statement read. “We assure you that we are moving forward with your best interests in mind.”
A court hearing is scheduled for April 25 at which time a plan will be made whether to restructure the project or sell it.
