The fate of the renowned Mallard Cottage was back before the Supreme Court this week.
Canada’s Business Development Bank claims it’s owed more than $500,000 by owners of the famed, but now closed restaurant.
There’s also an allegation, under the Fraudulent Conveyances Act, that proceeds of its sale were used to pay other creditors before and unbeknownst to the bank.
Nestled in historic Quidi Vidi Village, Mallard Cottage was sold in early January for more than $700,000 to a numbered company which has the same director as Mallard Cottage.
The bank says it wasn’t informed of the sale but got nothing from it. They’ve also included a list of those who did, including TD Bank, the director himself, Muskox Buffett PLC Inc., and the Canada Revenue Agency.
The Business Development Bank of Canada’s court application seeks to place the restaurant into bankruptcy and under control of a trustee.
Lawyers for Mallard Cottage say they’re waiting on further documentation from the Business Development Bank before deciding its next move.
The matter returns to court for an update on the parties’ positions in early May.