Bank Forcing Campeau to Prove His Solvency
The Bank of Montreal said Wednesday that it is seeking a court order to force former high-flying corporate raider Robert Campeau into personal bankruptcy to settle his debts.
Unless the former Campeau Corp. chairman can prove he is solvent, nearly everything he owns will be seized by a bankruptcy trustee.
Court documents show that the Bank of Montreal applied for the order Jan. 17, stating in its petition that Campeau has failed to make payments on $26 million ($30 million Canadian) in personal loans and interest owed to the bank.
Campeau will have eight days after receiving the bankruptcy petition to prove he is solvent. Otherwise, his personal bankruptcy will be nearly automatic, lawyers said.
Campeau has not been served with the bankruptcy papers because his whereabouts are unknown.
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