Re Atlantic Sea Cucumber Limited

Re Atlantic Sea Cucumber Limited

The Registrar held that the effective date of bankruptcy was the expiry of the NOI period (July 17, 2023), not the later OSB certificate date; evidence of AGAH’s Canadian-dollar account advances was admissible and the trustee acted within reasonable business judgment in allowing the aggregated claim; WTH failed to meet the burden under s.135(5) BIA to establish the trustee erred or was unreasonable; accordingly AGAH’s unsecured provable claim is fixed at $2,163,316.58 as of July 17, 2023 and each party bears its own costs.

Citation
2025 NSSC 419
Parties
Applicant Creditor (judgment Creditor): Weihai Taiwei Haiyang Aquatic Food Co. Ltd.; Unsecured Creditor / Related Company: Atlantic Golden Age Holdings Limited; Trustee: msi Spergel Inc.; Bankrupt / Debtor (watching Brief): Atlantic Sea Cucumber Limited; Registrar in Bankruptcy (decision Maker): Raffi A. Balmanoukian
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
29 December 2025
Procedural Posture
Bankruptcy and Insolvency – Application Under BIA S.135(5) / Chambers Decision on Proofs of Claim, Effective Date of Bankruptcy and Costs During SISP Process
Outcome
Application dismissed in part; AGAH’s unsecured provable claim allowed in the amount of $2,163,316.58 as of the effective date of bankruptcy (July 17, 2023); each party to bear its own costs.
Legal Topics
Proofs of Claim, Date of Bankruptcy (deemed Assignment Under S.50.4(8) Bia), Trustee Business Judgment and Deference, Admission of Affidavit Evidence, Costs, Sale and Investment Solicitation Process (sisp)
Source Language
English
Bankruptcy and Insolvency Corporate/commercial Law Civil Procedure Proofs of Claim Date of Bankruptcy (deemed Assignment Under S.50.4(8) Bia) Trustee Business Judgment and Deference Admission of Affidavit Evidence Costs +1 more

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Parties

Weihai Taiwei Haiyang Aquatic Food Co. Ltd.

Applicant Creditor (judgment Creditor)

Atlantic Golden Age Holdings Limited

Unsecured Creditor / Related Company

msi Spergel Inc.

Trustee

Atlantic Sea Cucumber Limited

Bankrupt / Debtor (watching Brief)

Raffi A. Balmanoukian

Registrar in Bankruptcy (decision Maker)

Procedural Posture

Bankruptcy and Insolvency – Application Under BIA S.135(5) / Chambers Decision on Proofs of Claim, Effective Date of Bankruptcy and Costs During SISP Process

Legal Issues

  1. 1 What is the effective date of bankruptcy for Atlantic Sea Cucumber Limited?
  2. 2 Whether additional advances from AGAH (Canadian dollar account) are admissible and provable in bankruptcy
  3. 3 Whether the trustee erred or acted unreasonably in allowing AGAH’s aggregated claim

Ratio Decidendi

The Registrar held that the effective date of bankruptcy was the expiry of the NOI period (July 17, 2023), not the later OSB certificate date; evidence of AGAH’s Canadian-dollar account advances was admissible and the trustee acted within reasonable business judgment in allowing the aggregated claim; WTH failed to meet the burden under s.135(5) BIA to establish the trustee erred or was unreasonable; accordingly AGAH’s unsecured provable claim is fixed at $2,163,316.58 as of July 17, 2023 and each party bears its own costs.

Court Disposition

Application dismissed in part; AGAH’s unsecured provable claim allowed in the amount of $2,163,316.58 as of the effective date of bankruptcy (July 17, 2023); each party to bear its own costs.

Orders

  • AGAH’s claim admitted as unsecured and fixed at $2,163,316.58 as of July 17, 2023
  • Admitted evidence includes Mr. Gao’s December 12, 2025 affidavit and the Canadian-dollar account advances