Friday, September 05, 2008

Some HVR answers - and the start of a plan!

Today's press release from Newfound NV (NFLD) announced that they have filed for "protection from the creditors" for Humber Valley Resort Corporation (HVRC). This provides at least a 30 day period for the company to submit a plan for the future. Ernst & Young have been appointed to work on the plan, and there has been consultation with provisional government.

It seems that this outcome is a positive move in a poor situation. All stakeholders have known for while that change is required. Now all involved in Humber Valley Resort (direct & indirect) have a breathing space, to plan for the viable future.

We're hoping to meet some key individuals over the next few days, and blog accordingly.


Following is today's press release from Newfound NV ...

Humber Valley Resort Corporation (“HVRC”) Press Release
Friday, Sept 5, 2008 14:30 GMT.

Humber Valley Resort (“HVRC”) has today been granted protection against creditors, in the Supreme Court of Newfoundland and Labrador, under the Companies’ Creditors Arrangement Act (“CCAA”). This follows a review of HVRC’s financial position and particularly its various contractual commitments. The conclusion of the review was that HVRC, under its current structure and with its current commitments, is not financially viable.

As a result, the company filed for protection after carefully considering all options, including sending the company into receivership. After consulting with outside advisors, the company felt that all stakeholders, including chalet owners, investors/shareholders, HVRC employees, the surrounding communities and creditors would ultimately be best served by the proceedings and protections offered under CCAA.

The application was filed jointly as a plan of compromise or arrangement for HVRC, so as to include Newfoundland Travel and Tourism Corporation, Humber Valley Construction Limited and Humber Valley Interiors Limited, those affiliated companies that collectively comprise the Resort.

HVRC views the potential of this arrangement with its creditors, under the protections provided by CCAA, to be the most appropriate, fair and reasonable way to move forward with its plans to continue doing business. “HVRC is primarily concerned with protecting the interests of all stakeholders,” stated Derrick White, President of Newfound Canada, parent corporation of the affiliated companies, “and we believe CCAA provides us with the very best opportunity to work together with interested parties for the ongoing benefit of all.

CCAA allows for a 30-day period during which HVRC will produce and present a plan to creditors regarding the reorganization of the Resort. HVRC sees this as a viable alternative to bankruptcy. “The company has been engaged in detailed consultation with the Government of Newfoundland and Labrador throughout its decision making process. It continues to see the resort as an asset to Newfoundland and Labrador, and consideration of those western Newfoundland communities that have served us well over the years will be at the forefront of the company’s mind,” said White.

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