November 26, 2019
Richard Pelletier Holdings, a holding company related to one of the sellers of Pacer Construction, was ordered bankrupt on November 26 on application by Pacer Construction Holdings, a holding company related to the purchaser of Pacer Construction. Pacer Construction was sold in 2014, with the sellers receiving approximately $135.3 million in cash. Following the closing of the sale transaction, it was alleged that Mr. Pelletier falsely represented the financial condition of Pacer. Mr. Pelletier denied the allegations and the matter went to arbitration. In 2019, an arbitral tribunal found the sellers liable to the purchaser for over $60.0 million plus interest and costs. The other sellers, excluding Mr. Pelletier and Richard Pelletier Holdings, have paid their portions of the awards. In July 2019, Mr Pelletier made a declaration that his holding company had no assets whatsoever. The applicant alleges that this is because a scheme was set out to divest the assets to related entities.The awards were converted into a judgment in August 2019 and the purchaser pursued a bankruptcy order on the basis that acts of bankruptcy were committed in the last six months. Grant Thornton is the bankruptcy trustee. JSS Barristers and MLT Aikins are counsel for the applicant.