ARTICLE · 16 SEPTEMBER 2016

Requirements For Granting A Bankruptcy Order

Cox & Palmer

Explore more from Cox & Palmer

In the Nova Scotia case Witch's Glen Gold Inc., Re, 2015 NSSC 93, the sole creditor, Steve Furlotte, brought an application pursuant to s. 43 of the Bankruptcy and Insolvency Act (BIA) seeking a bankruptcy order against the debtor Witch's Glen Gold Inc. ("WGC").

CanadaInsolvency/Bankruptcy/Re-Structuring

Gavin D.F. MacDonald

Author LinkedIn connections

In the Nova Scotia case Witch's Glen Gold Inc., Re, 2015 NSSC 93, the sole creditor, Steve Furlotte, brought an application pursuant to s. 43 of the Bankruptcy and Insolvency Act (BIA) seeking a bankruptcy order against the debtor Witch's Glen Gold Inc. ("WGC").

Background

Mr. Furlotte had owned the single issued share in Flex Mining & Exploration Limited ("Flex"). In 2013 Mr. Furlotte reached an agreement for sale of the share and debt owed to him by Flex to WGC. The purchase price of $2 million was to be paid in three instalments, secured by a Share Pledge Agreement ("SPA"). WGC failed to make payment on the first note when it became due. An extension to the payment date was granted and WGC subsequently provided a cheque to Mr. Furlotte. However, when Mr. Furlotte presented the cheque for payment, he was advised that there were insufficient funds in WGC's account.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Beyond Borders And Solvency: How Far Can The CCAA Go To Protect Investors?

CanadaInsolvency/Bankruptcy/Re-Structuring

Langlois Avocats

Monitor Your Approval: Canacol Clarifies The Limits Of Report Approval Orders

CanadaInsolvency/Bankruptcy/Re-Structuring

Restructurer Avant L’Insolvabilité : Ce Qu’Enseigne L’Affaire Ravelin Aux Sociétés Ouvertes En Difficulté

CanadaInsolvency/Bankruptcy/Re-Structuring

Restructuring Before Insolvency: What Ravelin Means For Distressed Public Companies

CanadaInsolvency/Bankruptcy/Re-Structuring

Before The Breach: How Borrowers Can Respond To Tariff-related Financial Stress

CanadaInsolvency/Bankruptcy/Re-Structuring

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Insolvency/Bankruptcy/Re-Structuring
- Insolvency/Bankruptcy

Related Comparative Guides

Comparative Guide

Restructuring & Insolvency

See more popular content from

Insolvency/Bankruptcy/Re-Structuring

What A Personal Guarantee Means For Ontario Business Owners (Video)

Ontario bankruptcy and insolvency lawyer Andrew Johnstone explains how personal guarantees function in Ontario and why they play a significant role in commercial lending.

CanadaInsolvency/Bankruptcy/Re-Structuring

Devry Smith Frank LLP

Restructuring Before Insolvency: What Ravelin Means For Distressed Public Companies

A publicly listed REIT successfully restructured approximately $1 billion in defaulted debt through a CBCA plan of arrangement without filing for CCAA protection, demonstrating how corporate law mechanisms can serve as practical alternatives to formal insolvency proceedings. The Ontario Superior Court's decision in Re Ravelin Properties REIT also clarified that confidential restructuring negotiations do not necessarily trigger material change disclosure obligations for public companies.

CanadaInsolvency/Bankruptcy/Re-Structuring

Equipment Lessors vs. Insolvent Lessees: The Battle Over The Stay

Timothy Dunn of Blaneys recently secured a key win for equipment lessors navigating insolvency proceedings.

CanadaInsolvency/Bankruptcy/Re-Structuring

Blaney McMurtry LLP

Five Trends And Developments In Restructuring And Insolvency

After what many have expected to be a temporary crisis, the pandemic has brought a fundamental shift in how business is conducted across all economic sectors in Canada.

CanadaInsolvency/Bankruptcy/Re-Structuring

10 Warning Signs Your Business Is About To Face Bankruptcy

It is not uncommon for a business to experience financial hardship. If you can identify problems early, you can have a head start in rectifying them.

CanadaInsolvency/Bankruptcy/Re-Structuring

SCC Clarifies When A "Student" Can Be Released From Student Loan Debt

On April 17, 2025, the Supreme Court of Canada (SCC) released its decision, Piekut v Canada, 2025 SCC 13, in which the SCC declined to release the plaintiff from her student loan debt, finding that she sought relief too close to when she ceased being a student.

CanadaInsolvency/Bankruptcy/Re-Structuring

Bishop & McKenzie LLP

Error And Estoppel In Creditor Claims

Clerical errors are an unfortunate fact of business life. When they happen, they are typically reversible, with the appropriate apologies. But when the payout of creditor claims is involved ...

CanadaInsolvency/Bankruptcy/Re-Structuring

How A Licensed Insolvency Trustee Can Help

Crowe MacKay's Licensed Insolvency Trustees are here to support you through times of financial stress. The insolvency team explains how they can help you navigate uncertain times and how their services translate to your wellbeing.

CanadaInsolvency/Bankruptcy/Re-Structuring

When Receiverships Collide With Bankruptcy: Practical Lessons From The U.S. And Canada

Receiverships and bankruptcy proceedings often share objectives, including preserving value, centralizing control and maximizing recoveries, but involve different decision-makers and different statutory frameworks.

CanadaInsolvency/Bankruptcy/Re-Structuring

Dickinson Wright PLLC

Torys Insolvency Litigation: Key Developments And Takeaways For 2026

This past year or so has featured a diverse range of consequential insolvency disputes across industries, underscoring both the breadth of challenges facing Canadian businesses as well as the continued adaptability...

CanadaInsolvency/Bankruptcy/Re-Structuring