Kredl’s Corner Market on the Brink of Bankruptcy

by San Antonio Attorney

Kredl’s Corner Market, which is located in New Brunswick, Canada, closed in December 2016, leaving 70 people unemployed.

Kredl’s owner, David Wolpin, said the local store is expected to declare bankruptcy on Dec.  16 unless it can settle its obligations to Farm Credit Canada.

The top creditor of the store is the Farm Credit Canada.  Last July, the estimated claim of Farm Credit Canada amounted to $1,083,000, which was around 59% Kredl’s unsecured debt.

Based on the July proposal in the Bankruptcy and Insolvency Act for the company to steer clear of bankruptcy, FCC had to accept to the settlement offer Kredl.  But it didn’t.

Wolpin accuses his business was then offered a financing by Opportunities New Brunswick last October to pay its obligations to Farm Credit Canada.

However, the Crown corporation has later on backed down on its proposal, he said.

According to Opportunities New Brunswick, it contemplated several ways to provide help to Kredl’s, there was a lack of support coming from the provincial government.

ONB said it was able to conclude that giving financial aid to Kredl’s would not help in retaining workers, and so the request of the company for support was declined.

Reports show that the company had $2,690,146.09 in debt and $824,305.88 in assets as of July 15, 2016.

Kredl’s is a local food business that began as a country farm stall in 1980.  It sells meats, deli, baked goods and grocery items sourced from local suppliers.

If your debt exceeds your assets, filing for bankruptcy may be a reasonable way out of a problematic financial situation.  You can talk to San Antonio Attorneys specializing in bankruptcy to find out how this legal process can provide you with debt relief.

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