The National Bank of Canada is suing Joseph Richard Group principals Ryan Moreno and Andre Bourque in separate lawsuits for $16,014,972.60 each.
This includes some interest, which continues to accrue at rates of 1.5 per cent and three per cent, according to the lawsuit.
Each of the two lawsuits, filed June 18 in BC Supreme Court, allege that the defendants "guaranteed payment to the bank of all debts and the performance of all other obligations of JRI (Joseph Richard Investment Ltd.) to the bank."
JRI is a company related to the more commonly known Joseph Richard Group, which when it .
National Bank alleged that at the end of July 2022 it and JRI entered into an equipment loan and security agreement. Earlier that month, the parties also agreed to a commitment letter, through which the bank extended what it called "extended credit facilities" to JRI, National Bank said in its lawsuit.
"The bank advanced funds to JRI in accordance with the loan agreements and otherwise performed all of its obligations in accordance with the terms of the loan agreements," said the bank.
"JRI has since defaulted on its obligations under the loan agreements by failing to comply with the terms thereof, including failing to repay the amounts owing to the bank as and when they came due."
None of the allegations have been tested in court and the defendants have yet to file responses to the notices of civil claim.
BIV contacted the business partners for a response to the lawsuits.
“We can’t comment much as it’s currently before the court,” Moreno said in a text message.
“We had to cancel some large projects over the pandemic … but we’re very optimistic for a positive outcome and a great future ahead.”
He said the company has emerged from creditor protection and is looking to the future.
The monitor for the creditor protection process, MNP, issued its .
EY initially shepherded the process and last year .
That was the only bid compliant with conditions, such as that the bidder put up a 10-per-cent deposit and that the bid be received by Aug. 1, 2024.
When BIV spoke with Moreno last month, he would not disclose names of principals in that numbered company, nor say if he was a shareholder. He said that he could not speak about that company’s corporate structure.
Moreno remains CEO of Joseph Richard Group, and his company’s only recent permanent pub closure was the Buck & Ear in Richmond, which had .
“We did a lot to save a lot of jobs and I feel like we were able to do that,” Moreno said. “There’s still a lot to deal with.”
Joseph Richard Group’s website lists eight pubs or restaurants, two liquor stores, a catering business, an events business, a virtual restaurant venture and one combination hotel and café.
One other Vancouver hospitality venture that entered creditor protection is set to soon emerge from that process.
Donnelly Group principal Jeff Donnelly told BIV Tuesday that (TSX:BMO).
The good news with this, he said, is that all of the establishments under the company's Freehouse Collective umbrella will stay open and more than 500 employees will keep their jobs.
