The court dismissed Farm Credit Canada's application for the appointment of a receiver over the assets of Kapital Produce Ltd. and related companies.
The court found that, although there were alleged events of default under the credit agreement, most were cured within the required period and did not constitute actionable defaults.
The court held that the appointment of a receiver was not just or convenient in the circumstances, given the significant value of the security held by FCC, the lack of evidence of irreparable harm or risk to the assets, and the Debtors' ongoing efforts to resolve the indebtedness.
