The trustee in bankruptcy (MNP Ltd.) brought a motion for discharge from its duties administering the bankruptcy estate of Blue Mountain Four Season Limited.
The largest creditors, Ron and Sharon Suter, filed a notice of objection arguing that the trustee failed to properly investigate and recover the bankrupt's assets, particularly equipment allegedly owned by the company but being used by its former owner and operator.
The court found that the trustee had taken reasonable steps to investigate the bankrupt's affairs, including arranging for the examination of the company's owner under oath by the Office of the Superintendent of Bankruptcy.
The court granted the trustee's discharge, noting that the trustee's decision not to pursue further litigation was reasonable given the lack of funds in the estate and the risk of personal liability for costs.
