IN THE SUPREME COURT OF NOVA SCOTIA
IN BANKRUPTCY AND INSOLVENCY
Citation: Classic Cheesecakes Delicious Delectable Delivered Inc. (Re)
2007 NSSC 190
Date: June 13, 2007
Docket: S.H. 280604
Registry: Halifax
In the Matter of: Classic Cheesecakes Delicious Delectable Delivered Incorporated
In the Matter of: the Petition of Nova Scotia Business Incorporated (the “Petitioner”) for a Receiving Order
_________________________________________________________________
LIBRARY HEADING
__________________________________________________________________
Registrar: Richard W. Cregan, Q.C.
Heard: May 25, 2007
Written Decision: June 13, 2007
Subject: Nova Scotia Business Incorporated (NSBI) petitioned the court for a receiving order under the Bankruptcy and Insolvency Act against Classic Cheesecakes Delicious Delectable Delivered Incorporated (the Company).
Summary: The Company has been in default under loans from NSBI as well as other term and current loans, and payables. It was operating at only 15% capacity.
The Company submitted on the basis of expectation of future demand for its product that given a chance it could turn around and pay its debts.
Result: The court found that a receiving order should be granted. The Company was indebted to NSBI for more than $1,000 and it had ceased to meet its liabilities generally as they became due.
The extent of its liabilities was so great and future demand for its product was so speculative that it was not reasonable to expect it would be able to turn itself around and be able to pay its debt.
THIS INFORMATION SHEET DOES NOT FORM PART OF THE COURT’S DECISION
QUOTES MUST BE FROM THE DECISION, NOT THIS LIBRARY SHEET