The owners of Humber Valley Resort have released an internal memo that allegedly indicates the provincial government initially had no intention of taking back expansion lands committed to the resort in 2008.
The internal memo was written by Derrick White, who was president of Newfound Canada and a representative of the former owners of the residential and golf course development at the time. The memo was prepared for shareholders in Newfound Canada and contained details of a meeting held with government on Sept. 16, 2008 to discuss the dire financial straits Humber Valley Resort was in at the time.
The former owners of the resort had filed for protection under the Companies Creditors Arrangement Act at that point and had defaulted on their latest payment.
By early December 2008, and at least five days prior to the resort being declared bankrupt, the province terminated the expansion land lease agreement.
Defied a stay of proceedings
The current owners of the resort, Katie Watton and Gary Oke, have launched a lawsuit against the provincial government alleging the province defied a stay of proceedings ordered by the Supreme Court of Newfoundland and Labrador by terminating the lease. The stay of proceedings had effectively frozen the rights of any creditors — which included the province — or shareholders involved with the resort.
FULL ARTICLE - Western Star
No comments:
Post a Comment
Thanks for taking time in adding your comments. We welcome the interaction and your feedback.