Bank Seeks Control of Company at Center of Ontario Scandal

A Canadian bank is seeking court permission to take control of a company at the center of an Ontario government scandal. National Bank of Canada filed a court application to put Keel Digital Solutions and its associated companies under receivership.

The bank claims that Keel Digital borrowed over $4.5 million from it, but has stopped making interest payments and ceased operations. The company's chief operating officer, Jay Fischbach, disputes this, saying they intend to repay the loan in full.

National Bank is seeking a court order because it believes the companies have diverted their banking activity to TD Bank, leaving them without visibility into Keel Digital's operations. This move comes as the Ontario government is suing Keel Digital for $26 million, alleging fraud and seeking repayment of funds provided through the Skills Development Fund.