Nova Scotia's economic development agency goes to court for return of C$430,000 from three separate loans allegedly made to Holdright Lumber since 1998

Wendy Lisney

LOS ANGELES , February 28, 2012 (Industry Intelligence) –

Nova Scotia launched legal action Friday in provincial Supreme Court against Holdright Lumber Products Ltd., seeking repayment of a total C$430,000 from three loans made from 1998 to 2006, The Coast reported Feb. 27.

Nova Scotia Business Inc. (NSBI) alleges it first loaned the Caledonia, Nova Scotia-based firm C$65,500 in September 1998. That loan remained unpaid when, in Feb. 2003, NSBI made another loan to Holdright Lumber of C$189,000.

NSBI alleges it made a third load to the Queen's County company of an additional C$150,000 in Mar. 2006, bringing the total owed to C$430,000, including interest, reported The Coast.
Bankruptcy documents filed by the mill in 2010 listed amounts owing NSBI as totaling $427,000.

Holdright Lumber allegedly defaulted on the loans and owners Carolyn Anne Holdright and Neily Roy Holdright allegedly defaulted on a Guarantee Agreement for the loan, according to documents in the suit, reported The Coast.

No comment was available from the Holdrights. The defendants have 15 days to file a defence, according to the Chronicle-Herald.

The provincial department of Justice filed the suit on behalf of NSBI.

The 20-employee lumber mill was rebuilt twice, after being struck by fires in 1998 and 2003. The mill closed in 2007, reported the Chronicle-Herald.

The primary source of this article is The Coast, Halifax, Nova Scotia, on Feb. 27, 2012, and the Chronicle-Herald, Halifax, Nova Scotia, on Feb. 27, 2012.

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