Court documents say the company has more than $14 million in debt, mostly to lender Sungrown Mortgage Corp. and the CRA, and the company was forced to enter insolvency and sell off its remaining inventory under threat of destruction.
Fitzpatrick’s ruling said the “fire sale” circumstances were unfortunate, arising “somewhat inexplicably from the position of CRA, and CRA’s threat to enter Tantalus’ premises and destroy the inventory and/or its value.” Had the CRA renewed the company’s licence, an orderly sale would’ve benefited the agency itself “as a result of the increased tax revenues rather than the reduced proceeds anticipated to be received in a forced liquidation or fire sale scenario,” Ernst & Young’s report said.
Sutton said he couldn’t reveal too much since the insolvency process is still ongoing, but called the CRA’s actions “peculiar” because it would’ve benefited as a creditor had it granted Tantalus more time.Sutton and many others have long complained about what he calls the “extreme and burdensomeThis advertisement has not loaded yet, but your article continues below.