National Bank Seeks Control of Keel Digital Amid Loan Default Allegations

A Canadian bank is seeking court approval to take control of Keel Digital Solutions and its affiliated companies due to alleged loan defaults. National Bank of Canada claims that Keel Digital borrowed over $4.5 million from it but stopped making interest payments and ceased business operations.

The bank's application, filed with Ontario's Superior Court, seeks to appoint BDO Canada Limited as a receiver to safeguard the companies' assets and allow the bank and other creditors to be repaid.

Keel Digital's chief operating officer, Jay Fischbach, denied allegations that the company diverted funds from National Bank, stating that it had always maintained an account with TD Bank.

The Ontario government has also launched a lawsuit against Keel Digital, alleging fraud and seeking repayment of about $26 million. The company is countersuing the province for $100 million, claiming that it still owes money for services provided and that its reputation was damaged.