NSBI suing Archibald and Britex

Sandy Archibald and Britex, his former company, are being sued for over $3.4

million in unpaid debts.

The lawsuit, filed on February 9 at Nova Scotia Supreme Court, claims The

Britex Group Inc. owes Nova Scotia Business Inc., $3.38 million plus interest from a 1999 loan for equipment and working capital. The company defaulted on the loan in June 2002, according to documents.

The documents also claim that Sandy Archibald, listed as the company's board chairman, personally owes the agency $1 million; and registered agent

Malcolm Inglis owes $50,000.

The original loan was for $4.9 million, payable at 8.75 per cent interest.

Archibald personally guaranteed $1 million; Inglis personally guaranteed $50,000. The company paid $18,343.68 between 1999 and 2002 against the interest.

The lawsuit claims Britex owes $762.91 a day in interest until the loan is paid.

Archibald and Inglis were asked to repay their personal share of the loans by registered letter Nov. 22, 2006. No defence has been filed yet.

For years, Britex relied on funding from various government sources. The province forced Britex into receivership in October 2003, after it had to pay the company's $900,000 line of credit.

The Centrelea, Annapolis County company, which made fabric for underwear and other elastic garments, employed about 100 people.