The applicant credit union sought an order appointing a receiver and manager over the property and assets of the respondent hotel franchisee and its owner due to significant loan defaults.
The respondents opposed the application, arguing they had a plan to sell the property and refinance to pay off their creditors.
The court found the respondents' proposed sale agreement was not firm and lacked evidence of financial viability.
Concluding that the applicant's security was at risk and a receiver was necessary to stabilize the business, the court granted the application and appointed the receiver, though it declined to authorize an immediate assignment into bankruptcy.
