Canadian toy distributor Everest Toys has been placed into receivership.

Court documents show the Ancaster, Ont.-based company owed TD Bank about $25-million when the financial institution made a receivership application and terminated its relationship with Everest Toys.

TD argued receivership was necessary because Everest was facing deteriorating financial circumstances and had failed to satisfy the terms of its lending agreements.

The bank says the company’s entire board resigned in August and it’s unclear whether workers have been paid since.

Receivership is a legal process where a neutral third party is appointed by a court to take control of a distressed company in order to recover amounts owing to creditors. Spergel Inc. is the receiver for Everest Toys.

Everest Toys’ website sh

See Full Page