March 18, 2019
Besco International Investment, a Richmond, British Columbia-based company that owns a 25-acre property in Port Hope, Ontario, had its property placed in receivership on March 18 on application by Weichang Yang, owed approximately $3.6MM. The company is a guarantor of Huigang Sun's obligations to Yang. In May 2017, Yang advanced the equivalent of $5.0MM (CAD) in Chinese currency to Sun. Contrary to their oral agreement, Sun failed to provide Yang with the agreed amount of Canadian currency in return. Although Sun eventually repaid some amounts to Yang, he did not have the funds to pay the remaining balance owing; as such, the parties agreed to extend the maturity date of the loan. As part of the negotiation of this loan agreement, the company and Yang entered into a guarantee agreement. The company's obligations are secured by a general security agreement ("GSA"), which granted Yang the right to appoint a receiver over the company's assets and property upon a default under the GSA. KSV Advisory was appointed receiver. Counsel is Fasken for the applicant, Rebecca Huang & Associates for the company and DLA Piper for the receiver.