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Pigeon king's bankruptcy trial delayed again

Tuesday, October 20, 2009

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by BETTER FARMING STAFF

Personal bankruptcy proceedings against Ontario’s pigeon king are delayed — again.

A statement to press emailed Tuesday from Susan Taves, senior vice president of BDO Dunwoody Ltd. in Kitchener states Galbraith’s hearing, scheduled for today at the Ontario Superior Court of Justice in Bankruptcy and Insolvency in London, has been moved to Dec. 16.

In her email, Taves said Galbraith’s counsel had requested the most recent adjournment and the December date was firm.

“At this time we understand Mr. Galbraith continues to reside in Cochrane,” she wrote. “BDO has registered an interest on title to that land pending the bankruptcy application.”

The provincial court appointed BDO Dunwoody as Galbraith’s interim receiver in December 2008. BDO is also Pigeon King International’s bankruptcy trustee.

Galbraith founded the Waterloo-based company that sold pigeon breeding pairs for as much as $500 and bought back offspring for up to $50 each. Its collapse in June 2008 left debts estimated to total nearly $39 million and nearly 1,000 breeders in Canada and the United States with thousands of worthless pigeons.
 
The Waterloo Police Service’s fraud squad and the Royal Canadian Mounted Police have been investigating about 150 complaints concerning the business. No charges have been laid. Galbraith has strongly denied any wrongdoing.

In November 2008 James Wiersma of Fisherville, Ontario, one of four creditor-appointed inspectors in the PKI company bankruptcy, filed an application to declare Galbraith personally bankrupt with the Ontario Superior Court of Justice in Bankruptcy and Insolvency.

In court documents, Taves claims Galbraith “has outstanding obligations to creditors with whom he dealt personally prior to the incorporation of PKI” in 2007 and also owes PKI nearly $350,000 for shareholder loan advances.

Galbraith is fighting the application and asking the court to repeal the Nov. 12, 2008 appointment of BDO Dunwoody as interim receiver. BDO is also PKI’s bankruptcy trustee.

All claims have yet to be proven in court.

This is the hearing’s second adjournment. It was originally scheduled to take place in March. BF

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