The Royal Bank of Canada (RBC) brought a motion for the appointment of a receiver over the assets of 1731861 Ontario Inc., operating as Plasticap, due to the company's default on credit facilities and failure to comply with reporting obligations.
The company had previously consented to a receivership order and judgment on personal guarantees, held in escrow, contingent on full repayment by a specified date.
Despite partial payments, the final balance of over $1.7 million remained unpaid.
The defendants sought an extension, citing a potential investment, but failed to provide any sworn affidavit evidence to support their claims or demonstrate a reasonable certainty of repayment.
The court found it just and convenient to appoint a receiver, emphasizing the defendants' lack of evidence, their prior consents to the receivership and judgment, and the breach of the agreed-upon terms for adjournment.
