Kugler Kandestin wins $18 million judgment for Bixi creditors against the City of Montreal
By judgment dated April 18, 2017, Justice Martin Castonguay of the Québec Superior Court ordered the City of Montreal to pay Bixi’s bankruptcy trustee, represented by Kugler Kandestin, $15.9 million plus interest.
The judgment accepted Kugler Kandestin’s contention that Société de Vélo en Libre-Service (SVLS) was a commercial enterprise, and that it was unlawful for the City of Montreal to loan money to such a business. The judgment nullified the loan agreement entered into by the City of Montreal and SVLS, as well as the security the City of Montreal purported to hold over the assets of SVLS in virtue of the loan agreement. With interest, the judgment requires the City of Montreal to pay in excess of $18 million to the bankruptcy trustee of SVLS.