The applicant creditor sought a bankruptcy order against the respondent debtor based on his personal guarantees of corporate indebtedness totaling over $10 million.
The debtor opposed the application, arguing the guarantees were invalid because his employee signed them without his knowledge that they were personal, and that the corporate receiver's misconduct caused the shortfall.
The court found the guarantees valid and enforceable, noting the debtor's carelessness in authorizing the signatures without reading the documents.
The court concluded the debtor owed at least $1,000 and had committed an act of bankruptcy by ceasing to meet his liabilities generally as they came due.
The bankruptcy order was granted.
