Rideau Lakes-based manufacturer seeks investor amid explosive growth, cash flow crisis
LAURIE WEIR
The president of P3 Panel Company and United Edge Structural Components says his businesses are not going under, they’re restructuring to survive.
Dylan Sliter, one of the founders of the Rideau Lakes-based firms during a period of rapid expansion, said the Notice of Intention to Make a Proposal (NOI) filed in early April is not a signal of collapse, but a strategic pause to attract investment and stabilize operations.
“We exploded from $5 million to $20 million in annual sales in just a few years,” Sliter said in an interview May 20 with Hometown News, on site. “But we were still operating like a $5-million company. That’s where the growing pains came in.”
‘We’re here to stay’
Sliter, who also is a small percentage owner and serves as general manager of United Edge, said the companies are continuing to operate at their 30,000-square-foot facility on Poonamalie Road just outside Smiths Falls. Approximately 70 to 80 staff remain on site, with production still going strong.
According to court documents filed with the Ontario Superior Court of Justice in April, the companies are seeking a buyer or investor through a court-supervised sale and investment solicitation process (SISP). Combined, P3 and United Edge list more than $13 million in liabilities, including secured and unsecured creditors and outstanding CRA obligations. But Sliter emphasized that the companies have value, not just debt.
“This isn’t receivership. We’re not folding. The point of the NOI is to protect the business while we work with professionals to restructure,” he said. “We’re doing this to achieve the best outcome for (everyone).”
Much of the financial instability stems from a large-scale project in Kitchener, Ont., that Sliter admits was poorly managed and pushed the company past its financial limits.
“It wasn’t just the cost, it was the back charges after it ended,” he said. “That’s what tipped us into a place where we needed outside support.”
“It’s stressful,” said designer Kunj Tailor, (mechanical engineer) who commutes from Ottawa but can also work remotely. He was drafting a four-storey structure for an Ottawa client. “But we’re plowing through.”
He said Sliter is the right man for the task at hand: seeing the company through this process.
“He doesn’t let us focus on the negative,” added Tylar Nesbitt, a procurement purchaser, who was estimating costs for another job.
The company has been working with Albert Gelman Inc. as trustee and has requested an extension of time from the court to continue restructuring. A key hearing is scheduled for June 30.
According to court documents, as of late 2024, P3 Panels listed $10.3 million in liabilities against $7.6 million in assets. United Edge showed $2.4 million in liabilities against $4.3 million in assets. Unsecured creditors include dozens of suppliers across Ontario and Quebec, with some individual claims over $400,000.
A $1-million DIP (debtor-in-possession) financing agreement is currently in place, provided by Phoenix Building Components Inc., allowing operations to continue while the restructuring process unfolds.
Rideau Lakes Township confirmed late last week it was unaware of the situation until contacted for comment.
‘The system is broken’
Beyond internal challenges, Sliter said the broader problem is Ontario’s development climate. A long-time builder and member of the Lanark–Leeds Home Builders’ Association, he said excessive bureaucracy and development charges are stalling progress and harming businesses.
“Forty per cent of the cost of a new home is government-related,” he said. “And the red tape is endless. I’ve lost projects over paperwork alone.”
He added that some municipalities use technicalities to delay permits, while others simply resist growth.
“It’s frustrating when you’re trying to be part of the housing solution and all you get is delay, delay, delay.”
Despite the court filings, Sliter said he remains confident that with the right investor, ideally one who values the team and product, the companies can emerge stronger.
“We’re not done. We’ve got a solid team, and I believe in what we’re building here,” he said. “This is a pivot, not an end.”
He said the long-term vision includes streamlining operations, potentially merging P3 Panels and United Edge and expanding into multiple centres across Canada.
“There’s demand for what we do. We just need the right financial partner to match our growth.”
Located in Rideau Lakes but operating on the edge of Smiths Falls, P3 and United Edge have supplied materials for residential, commercial, and multi-unit housing builds across the region. Their integrated design-build model offers wall panels, roof trusses, floors and installation, all under one roof.
Sliter says that commitment to local service won’t change.
“Most of our wood is Canadian. Most of our people are local. We want to keep growing here and we want to come out of this stronger.”
