The Receiver of The Lion's Share Group Inc. brought a motion to appoint an interim receiver over the property of the debtor pursuant to section 46 of the Bankruptcy and Insolvency Act.
The Receiver argued that the debtor owed over $23 million under various promissory notes and personal guarantees, and that an interim receiver was necessary to prevent the dissipation of assets.
The debtor opposed the motion, arguing he was not personally liable under the guarantees and that the transactions in question were in the ordinary course of business.
The court granted the motion, finding that the Receiver was likely to succeed on the bankruptcy application and that there was an immediate need to protect the estate given the debtor's recent transactions and the complex web of related entities.
