PITTSBURGH A Hamilton, Ontario, metal recycler placed into temporary receivership under the Canadian Bankruptcy and Insolvency Act is now in full receivership, and the assets of the business will be distributed to creditors.
The affairs of 1426645 Ontario Ltd., doing business as New Metal Recycling, were pushed into insolvency proceedings at the request of Toronto-Dominion Bank (amm.com, Feb. 14).Toronto-based A. Farber & Partners Inc. has been named as receiver.
Documents filed in the Ontario Superior Court of Justice indicate that New Metal Recycling has ceased operations, owing Canadian $2.2 million ($1.97 million) to its bank and more than C$1 million ($894,050) to creditors, including many metal recyclers.
The documents also indicate that the bankruptcy of a second Ontario recycler is connected with the insolvency proceeding. Two businesses owned by Rantel Boparai1650473 Ontario Inc., also known as Scrapmen & Boparai Trading Co., and 2328247 Ontario Inc., also known as Canada Steelwere put into receivership after defaulting on C$17 million in loans (amm.com, Jan. 15).These businesses were among New Metal Recyclings largest customers, owing it C$2.4 million.
Toronto-Dominion Bank said it found irregularities in New Metal Recyclings December banking activity, including larger-than-usual deposits and withdrawals, and in January it noticed reduced deposit activity.