The applicant bank brought a motion to appoint an interim receiver over the respondent companies' assets pursuant to section 47(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of Justice Act.
The companies had defaulted on their obligations under a master purchase and servicing agreement, failed to secure refinancing, and admitted to transferring funds from a blocked trust account following a fraudulent cheque incident.
The court found that the appointment of an interim receiver was necessary to protect the debtor's estate and the interests of the bank, and granted the motion with limited scope to preserve assets pending further resolution.
