Background:

• Applicants (Anderson et al.) sought a bankruptcy order against Westmount Projects Inc. under the Bankruptcy and Insolvency Act (BIA), claiming Westmount owed more than $1,000 and had committed acts of bankruptcy.
• Westmount, a property developer, disputed the debt and alleged set-off claims against Anderson.
• Westmount made a cross-application to modify a prior court order and sought to discharge mortgages held by Anderson.

Key Issues:

• Whether Westmount owed Anderson more than $1,000.
• Whether Westmount committed acts of bankruptcy, including fraudulent preferences and failing to meet liabilities.

Court's Findings:

1. Debt Over $1,000:
   • Westmount owed Anderson and his company over $1,000 based on loans, credit card debts, and other guarantees. However, certain claims like unpaid guarantee fees and legal indemnities were not sufficiently liquidated.
2. Acts of Bankruptcy:
   • The court found fraudulent transfers when Westmount transferred shares of subsidiaries to a family trust without consideration, constituting fraudulent preferences under BIA s. 42.
   • Westmount was also found to have ceased meeting its liabilities, given multiple foreclosure and receivership proceedings.
3. Cross-Application:
   • Westmount's request to modify a prior order and discharge Anderson's mortgages was dismissed.

Conclusion:

• Westmount was declared bankrupt, with Deloitte Restructuring appointed as trustee.
• Anderson’s mortgages remained valid, pending further assessment by the bankruptcy trustee.

Costs:

• Applicants were awarded 45% of their actual costs, payable from Westmount’s estate. The exact amount was not quantified in the decision.