Rokstad Holdings Corporation—a Coquitlam, British Columbia–based power line construction and maintenance contractor with operations across Canada and the United States—is in a Chapter 15 ancillary proceeding in Delaware (Case No. 24-12645) before Judge Mary F. Walrath, seeking recognition of a Canadian court-supervised receivership as a foreign main proceeding and support for the receiver's asset-sale process.
The group's insolvency stems from more than two years of unresolved secured-debt defaults. Rokstad defaulted on its Canadian Western Bank loan agreement in March–April 2022, and by September 2024 it carried total indebtedness exceeding C$100 million while burning US$1.5–2.0 million in cash each month. Trade payables surpassed $18 million—over $15 million delinquent—with vendors unpaid for ten-plus months and payroll increasingly at risk. A pre-receivership sale process failed to produce a going-concern transaction, leaving creditor enforcement as the only path forward.
The endgame began on October 7, 2024, when Stellex Power Line Opco LLC purchased CWB's position in the senior secured obligations (over US$34 million) and later acquired subordinate Crown Capital debt exceeding CAD$60 million. Stellex secured an interim receivership order appointing FTI Consulting Canada Inc. on October 10, 2024; the Supreme Court of British Columbia entered a permanent receivership order on November 6, 2024, vesting FTI with operational control and authority to borrow up to US$5 million. FTI, acting as foreign representative, filed the Chapter 15 PetitionDkt. 1 in Delaware on November 21, 2024, accompanied by detailed declarations of the group's five-division North American footprint, its approximately 493-employee IBEW workforce, and its deteriorating financial condition (Declaration of the Foreign RepresentativeDkt. 5; Declaration of Emily PaplawskiDkt. 6).
The Delaware court recognized the Canadian proceeding as a foreign main proceeding on December 12, 2024, and the receiver commenced the sale process the following day. With a U.S. sale order entered on February 7, 2025, the case is now concentrated on completing the wind-down of the group's U.S. assets and distributing proceeds under the receivership framework.
