Velocity Asset and Credit Corporation and 926749 Ontario Ltd. (o/a Clonsilla Auto Sales and Leasing), Receivership

Velocity Asset and Credit Corporation, a Burlington, Ontario-based lender to small and mid-market companies, and 926749 Ontario Ltd. (o/a Clonsilla Auto Sales and Leasing), a Peterborough, Ontario-based vehicle leasing company, were placed into receivership on October 26, on application by Enlightened Funding Corporation, owed over $19 million. The companies defaulted on their obligations under the loan agreement with Enlightened Funding, including by failing to provide financial statements as required, and a subsequent forbearance agreement. Deloitte was appointed receiver. Counsel is Bennett Jones for Enlightened Funding, Aird & Berlis for the companies and Gowlings for Peoples Trust Company of Canada.

By: Dina Milivojevic