Embattled Mount Pearl headstone company declared bankrupt
A headstone company that has been accused by customers of taking their money and not providing promised services in return is now bankrupt.
W.D. Kenny Granite Company Inc. had been in receivership since September, when a trustee moved in to change the locks and secure its assets.
Last month, the Bank of Montreal filed an application to force W.D. Kenny Granite into bankruptcy.
A judge granted the bankruptcy order at Newfoundland and Labrador Supreme Court in St. John's on Tuesday morning.
According to court documents, W.D. Kenny owed the bank nearly $460,000 as of late September.
Among the company's other debts were $114,000 due to the Canada Revenue Agency, and a number of smaller amounts owed to customers â some of whom had won court judgments against the company.
'Another stall tactic,' says lawyer for bank
At Tuesday morning's court hearing, company owner Bill Kenny repeatedly asked the judge for more time to arrange financing to settle the debts.
"It will take another couple of weeks," Kenny said.
Bank of Montreal lawyer Geoffrey Spencer told the court that the original demand letter to the company was issued more than a year ago.
"We've heard this over and over," Spencer said, about Kenny's claims that refinancing was just around the corner.
"Frankly, we don't believe it."
Kenny said he was working with two mortgage companies, and tendered documents that he indicated were from potential lenders in Toronto.
Spencer took exception, saying they were initial letters with "no certainty whatsoever" of any cash actually materializing.
"This is another stall tactic, another delay tactic," Spencer said.
Justice James Adams agreed that it was a "very early document."
Kenny appeared without a lawyer, even though Spencer said he was told at a previous appearance that he could not personally act on behalf of the company in court.
After admonishing Kenny for a series of interruptions, Adams granted the bankruptcy order.
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