Creditors winning lawsuit would be 'game over' for Deepak Int'l, lawyer says

The fate of Deepak International is now in the hands of a judge.

The troubled company purchased two government-owned diamond factories in Yellowknife two years ago.It's being sued by the company that loaned it the money to buy the factories.

Callidus Capital Corp. is asking the judge to award it the $5.5 million it's asking for without the need for a trial.

"If there's a summary judgment against him, it's game over," said Deepak's lawyer DouglasMcNiven. "Game over for him to get financing and game over for Callidus to collect its debt."

It will also spell the end of Deepak's attempt to get the factories up and running.

Interest at 20%

The lawsuit offered a glimpse into how desperate Deepak Kumar, the owner of Deepak International, was to get money.

He agreed to pay an interest rate that amounts to close to 20 per cent annually.

Callidus only gave Deepak $2.1 million before foreclosing. The rest of the debt is millions of dollars in fees and other charges Deepak agreed to pay after he defaulted and asked for time to find other financing.

Justice Andrew Mahar gave no indication when he will give his decision.