A British Columbia-based product safety testing and certification company has been placed into receivership after a lender accused it of repeated loan defaults, unpaid taxes and unreliable financial reporting.
Labtest Certification Inc., Labtest Certification Ontario Inc., 2842878 Ontario Inc. and Goshu Products/Services Inc. were placed into receivership on September 15, 2026, following an application by National Bank of Canada, which said it was owed approximately $17.6 million. Justice G.C. Weatherill of the Supreme Court of British Columbia appointed Deloitte Restructuring Inc. as receiver over the companies’ assets, undertakings and property. The court also granted National Bank a judgment of $17,621,821.65 against all four companies and against guarantors Kavinder Singh Dhillon and MuAnalysis Inc.
Labtest and Labtest Ontario provide testing, inspection and certification services for manufacturers and sellers of medical, electrical, chemical and other products that must meet Canadian and international standards. Goshu and 2842878 Ontario Inc. are real estate holding companies within the same group. Goshu owns properties in Delta and Richmond, B.C., while 284 Ontario owns two properties on Bristol Circle in Oakville, Ontario. The group is headquartered in Delta, and Dhillon serves as its chairman, president and chief executive.
How the Financing Unravelled
National Bank’s financing arrangements included a $500,000 demand operating loan and credit-card facilities for Labtest, a $100,000 demand operating loan and credit-card facility for Labtest Ontario, a $7.5-million demand collateral mortgage loan to Goshu, and a $9.8-million demand collateral mortgage loan to 284 Ontario. The Goshu loan had been used to repay prior financing and amounts owed to the Canada Revenue Agency, while the 284 Ontario facility was used to repay financing and buy out other shareholders. Most of the facilities were tied together under a cross-default agreement.
The bank said the relationship began to sour in 2025, with the companies in default since at least that September, prompting a temporary waiver of certain reporting and covenant breaches. Goshu subsequently missed monthly loan payments in November and December 2025, January 2026, and again from April through June 2026. National Bank also pointed to failures to meet a required debt-service ratio, deliver financial statements and projections, and keep taxes and other potential priority claims in good standing.
By February 2026, the bank was pressing for more information about the group’s finances and later uncovered significant unpaid income tax, GST/HST, payroll source deductions and property taxes. It retained Deloitte in April as a financial adviser to monitor the business, but said the companies failed to produce all requested records and that the information supplied was often incomplete or inaccurate. The bank also learned in May that the group was routing funds through accounts at Royal Bank of Canada and Wells Fargo rather than through its primary lender.
Tax Arrears and Accounting Concerns
The scale of the problem became more apparent when National Bank learned that a CRA payroll audit had identified roughly $700,000 in British Columbia payroll arrears and $240,000 in Ontario payroll arrears. The bank formally demanded repayment on June 2, giving the companies until June 23 to pay off all outstanding debt. That deadline passed without payment, and while the companies deposited enough funds on June 26 to cure earlier missed Goshu payments, they did not cure the June default, leaving the credit facilities almost fully drawn.
National Bank also raised doubts about the reliability of the group’s books and its capacity to complete a sale without court oversight, saying it had received repeated but poorly supported assurances of a potential third-party sale. According to the receivership petition, Deloitte’s review found that none of the sampled bank transactions supplied by the companies could be matched to journal entries, and a January 2026 migration to Salesforce software left gaps in the records supporting the 2025 balance sheet, requiring balances to be rebuilt manually. The business reportedly operated on a cash basis without formal month-end closings.
Assets, Claims and Next Steps
Deloitte took control of the companies’ assets on September 16. In a notice issued September 24, the receiver estimated total assets at approximately $23.9 million, made up of roughly $13.6 million in land and buildings, $6.1 million in net fixed assets, $1.8 million in accounts receivable and $735,000 in accreditations and intellectual property. Deloitte cautioned that these figures are not liquidation appraisals — the real estate values are based on property-tax assessments, while other categories come directly from the debtors’ own records.
Against those assets, the receiver reported known creditor claims of about $20.1 million, including National Bank’s roughly $17.6-million secured claim, approximately $1.3 million owed to the CRA, $175,000 in property taxes, and about $1 million owed to unsecured creditors. Deloitte noted the CRA figures could still change, as not all tax filings were up to date when the notice was prepared.
Labtest Group Receivership: Key Financial Figures
Deloitte has said it intends to monetize the group’s property to maximize recoveries for creditors, including pursuing a going-concern sale process for Labtest, Labtest Ontario and related entities. Legal counsel involved in the matter includes Blake, Cassels & Graydon for National Bank, DLA Piper for the receiver, and Arora Zbar and Richard Buell Sutton for the Labtest group.
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