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Pigeon King bankruptcy trustee awaits court outcome

Wednesday, December 1, 2010

by BETTER FARMING STAFF

Trustee BDO Canada Limited will keep its bankruptcy files on Pigeon King International and Arlan Galbraith open pending the outcome of criminal proceedings against the defunct company’s owner.

“We’ve been on hold a little bit because the police have been working on this,” says Susan Taves, spokesperson and vice president of the Kitchener-based bankruptcy trustee. “The fact they’ve actually now laid the charges is helpful because it’s clear to everyone why we have to wait.”

Galbraith was released on bail yesterday after being formally charged with one count of fraud over $5,000 and four offenses against the Bankruptcy Act. Police began investigating the pigeon breeder more than two years ago after closed his doors and put his firm into bankruptcy.

If a restitution for funds to be repaid is ordered, Taves says “we expect that would be paid to us as the trustee,” so that BDO could distribute it to creditors.  “It can take quite some time for criminal charges to actually be prosecuted,” she says.

To date, in Galbraith’s personal bankruptcy, the trustee has retrieved $225,000 from the sale of Galbraith’s 300-acre property near Cochrane, Ontario and about $400,000 from investments and cash. “It’s a small amount to pay out at this point in time because there are so many creditors and the dollar amount is quite low,” Taves says. “We’ll probably just wait until the whole criminal charge is figured out.”

So far, about $200,000 of the money collected has gone towards professional fees, Taves says.

The Cochrane sale was closed last month and the proceeds are in a trust account. Taves would not disclose the buyer. The sale was a completely public process with many bidders and the buyer has no connection to Galbraith, she says.

 “We’ve been asked that before on other files,” she says. “I think as a trustee in bankruptcy I’m an officer of the court, I’m not sure it’s my place to disclose who we end up selling assets to. I would probably have that same answer on any other file.”

She says the bankruptcy firm has not been in touch with Galbraith recently because it hasn’t been necessary. BF


 

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