January 20, 2023
Spektrum Glasses Inc., a Stouffville, Ontario-based online distributor of blue light blocking prescription and nonprescription eyeglasses and sunglasses, was placed in receivership on January 20, on application by BMO. In January 2022, the parties agreed that BMO would advance a term loan of approximately $1.5 million USD, a demand loan of $500,000 USD and US and Canadian Mastercards with $50,000 credit limits. In October 2022, the company defaulted on its monthly payment due under the term loan. Default has continued since that time. As well, no payments have been made on either the US or Canadian dollar Mastercards for two months. The Canadian Mastercard had also exceeded its $50,000 limit. BMO demanded repayment of the total amount outstanding of $52,946.48 and US$1,722,155.82 on November 28, 2022. BMO has also recently learned that the company defaulted on a vendor takeback loan granted as part of a share purchase transaction completed in 2020, and that judgment was rendered against the company in October 2022 in a proceeding commenced in British Columbia in the amount of $762,397.65. EY was appointed Receiver. Chaitons is counsel for BMO.
By Dina Milivojevic