The Bank of Montreal (Applicant) sought approval of the Receiver's (KSV) conduct, fees, and discharge, along with an order for costs against the Respondents (Can United Consulting Corporation, Facilitate Settlement, and other related debtor corporations) and personally against Mr. Kai Wu, the directing mind of the debtor corporations.
The Debtors had borrowed $2.1 million under a federal pandemic assistance program (HASCAP) and failed to repay.
The Business Development Bank of Canada (BDC) repaid the principal to BMO and stepped into BMO's shoes for enforcement.
The Debtors and Mr. Wu showed limited cooperation with the Receiver, failed to provide financial records, and transferred significant funds for personal use.
The court approved the Receiver's conduct, fees, and discharge.
Crucially, the court found Mr. Wu's conduct amounted to an abuse of process due to his persistent failure to comply with court orders and cooperate with the Receiver, despite repeated adjournments and undertakings.
Consequently, the court awarded $50,000 in costs against the Respondents and personally against Mr. Wu.