January 14, 2022
Sri Ayyappan Ltd., Thirukumar Pararajasingam and Bhaheswary Thirukumar, who own an operating gas station that includes a convenience store and a restaurant in Milton, Ontario, had a receiver appointed over their business assets on January 14, on application by RBC. RBC extended various loans to the debtors, all of which became due and payable towards the end of 2020. The parties then entered into a forbearance agreement which expired on April 29, 2021. The debtors argued that the receivership application was premature because they had entered into agreements of purchase and sale for the gas station and an adjacent residential property. Justice Conway concluded that there were numerous conditions to the transactions that made it highly unlikely that they could close any time soon and granted the receivership order. Spergel (GRIP) was appointed receiver. Counsel is Chaitons for RBC.
By Dina Milivojevic