Montreal developer Brivia Group has announced that two of the city’s largest developments, Mansfield Condos and all three phases of Philips Square, have been placed into receivership.

In the announcement Wednesday afternoon, Brivia Group states it has “agreed to collaborate with the lenders supporting these projects” under Canada’s Companies Creditors Arrangement Act (CCAA). 

Brivia states the application to the Superior Court of Quebec was filed by the Bank of Montreal, acting for three syndicates of secured lenders involved with the projects. The receivership order was granted on Wednesday, and Raymond Chabot named as the court-appointed monitor.

The CCAA proceedings will seek to facilitate the completion and the sale of the projects. Work on the developments and sales of condominium units in the towers will continue throughout the process, subject to access to interim financing.

The CCAA proceedings apply to Phillips Square and Mansfield, which are owned under limited partnerships. They do not apply to other development or construction projects being undertaken by Brivia, a privately held company founded over 25 years ago and which is owned by Kheng Ly.

The projects combined had initial budgets of almost $900 million.

'Significant economic challenges'

"Like many others in our industry, we have faced significant economic challenges in recent years, including pandemic-related work stoppages, supply chain disruptions, and rising interest rates,” Ly, the founding president and CEO of Brivia, said in the announcement. “A CCAA restructuring for these specific projects is a significant change to our operations, but we have agreed to collaborate with our lenders in their decision to proceed as such in order to navigate these headwinds, minimize the damages to the projects and ensure the projects' long-term success.”

The two developments have faced significant and ongoing cost overruns adding up to over $93 million according to the most recent budget estimates contained in a report by Raymond Chabot.

The report states the lead contractor Magil Construction has delayed or halted construction at the sites “multiple times due to, inter alia, alleged arrears owed and disputed claims.” Subcontractors have also made similar complaints.

The stated reasons are outlined in the Raymond Chabot report:

• COVID 19-related work stoppages and their continued impact on the timeline for project delivery, as well as supply chain issues and rising interest rates;
• disagreements with respect to cost overruns, which led to the work stoppages;
• the inability of Brivia Group, the developers and guarantors to finance the cost overruns; and
• the registration of legal claims by subcontractors against the projects.

The liabilities

The Raymond Chabot report lists total liabilities of $561.5 million, including its secured creditors and current accounts payable. That includes $210 million to the Bank of Montreal as the lead secured lender at both developments, and over $37.6 million owed to Magil Construction.

Bank of Montreal holds 41 per cent of the $514 million in secured debt for the projects.

In the leadup to the court order this week, Brivia and its lenders had communicated about the financial problems over an extensive period of time, and forbearance had been provided several times between July 10 and Dec. 1, 2025.

In the end, however, slow condominium sales and other challenges continued to exacerbate the situation.

"Even though construction resumed following the construction holidays and in the following months, the CCAA parties still face significant financial challenges in completing the ongoing projects and in selling, closing, and/or renting condominium units at a sufficient rate..." the Raymond Chabot report states.

About Phillips Square and Mansfield

Phillips Square Phase I consists of a marquee 200-metre highrise condominium tower, which the report states is 98 per cent complete. It comprises 488 condominium units and 293 rental apartments, with 425 of the condos sold or subject to pre-sale agreements, and 179 of the rental apartments leased.

Completion of the tower, which is focused on the luxury market, was scheduled for the end of February.

The documents state a potential sale for this phase of the project is in “advanced stages” of discussion, but no firm commitment was in place.

Phase II at Phillips Square has been under construction since 2024. The 21-storey condo tower targeted investors and owner-occupiers, with smaller units averaging 463 square feet. It was approximately 75 per cent complete as of Oct. 31, with 262 of the 441 homes under pre-sale agreements. The target for completion was the end of June.

Phase III at Phillips Square was to include a hotel, but development has not yet begun.

Mansfield Condos is located at 1230 Mansfield St., and consists of a 19-storey luxury tower which comprises 214 homes, of which 159 were subject to pre-sale agreements. As of September 2025, it was 76 per cent constructed, and was also expected to complete at the end of June.

No news for condo owners, pre-sale purchasers

The Raymond Chabot report states there is no information on the potential impact for condo buyers or those who have made deposits for pre-sale agreements.

The report proposes a sale process for the projects which would solicit bids over the next two months and conclude with a closing date of April 24.

Brivia operates one of the largest groups of companies in the residential-construction industry in Quebec, with activities across Canada. Brivia employs approximately 30 employees and operates or has investments in 10 projects in Quebec and 13 projects across Canada. 

One of Brivia's other marquee projects, the 60-storey CURV tower in Vancouver, was placed into receivership in summer of 2025. The tower comprises 480 mainly strata units, though about 25 per cent were reserved as rentals.