The Ontario Securities Commission’s (OSC) hearing into Home Capital Group Inc. has been put over to June 2.
The Toronto-based lender has seen its share price tumble in recent weeks following allegations from OSC staff that the company, two former CEOs and the current CFO broke the law in their handling of a scandal involving falsified loan applications.
The company has said the allegations are without merit and vowed to defend itself.
Lawyers for the three men did not immediately respond to requests for comment on Thursday.
When the OSC announced the allegations two weeks ago, former CEO Martin Reid declined comment.
The OSC allegations prompted some customers to pull their deposits, which Home Capital uses to fund its mortgages, out of the company.
Home Capital recently secured a $2 billion credit line from the Healthcare of Ontario Pension Plan to make up the lost capital.
Ratings agency DBRS downgraded Home Capital’s senior debt rating to CCC from BB on Wednesday after the company announced it was postponing the release of its first quarter results until May 11.
The rating indicates “very highly speculative credit quality.”