The applicant bank sought the appointment of a receiver over two corporate debtors and two residential properties owned by the individual guarantor following defaults on credit facilities.
The debtors opposed the appointment, arguing there was no urgency and that the guarantor was best positioned to sell the properties.
The court found it just and convenient to appoint a receiver over the corporate entities and a vacant residential property due to the ongoing erosion of security and the guarantor's failure to secure refinancing or a sale over two years.
However, the court declined to appoint a receiver over the guarantor's matrimonial home, finding it unnecessarily invasive and noting the bank could pursue other contractual remedies.
