HVR/Newfound - Owners meeting gets CCAA plan

Wednesday 22nd Oct (London) - The CCAA meeting with Owners, HVRC, Newfound and the Court Monitor was very well attended with approx 150-170 people!

The 2.5 hrs meeting was well run, and chaired by the court appointed "monitor" Mat Harris (of Ernst & Young). The session covered:

1) explaining the CCAA process
2) what went wrong at HVR (including the sales/costs numbers)
3) how Newfound has been involved
4) what HVRC is doing now on the resort
5) HST issues and the effect on Owners
6) what assets remain, and who owns what
7) Strawberry Hill update
8) outline of the Future Plan - for voting on by creditors
9) Provincial government's involvement and actions - inc flights
10)better understanding of Newfound NV and where they're going

This Blog will detail more about the meeting in the next day or two. However a few notably quotes and notes:

1. "... shambolic way HVR was run ... I've never seen anything like it ... on behalf of the new management, we're sorry!"

2. The sale of Strawberry Hill got just one offer. There was shock at the value offered, ("significantly less than $1M")!!

3. Newfound became involved when HVR desperately needed cash input (summer-08). To speed up the process the previous management provided a "warrantied due diligence" in place of a normal 3 month period. The needed cash was provided. However the full facts had not been delivered and in fact HVRC was hemorrhaging cash. There were even questions raised during the meeting of whether the previous management should face a legal situation ...

4. Issues with construction/design of chalet decks require independent inspection

5. The Plan (all of which requires a lot more detail, and then approval) includes making the resort infrastructure part of Pasadena, to bring in an hotel operator to build in the driving range area, and to develop the Phase2 expansion area (another golf course and 2nd hotel) with some profit to be returned to a creditors pool.

6. The importance of the agreement to The Plan, of all stakeholders including the provincial government.

7. The Plan will be voted on by the end of Dec-08, however Newfound & Aglio will not vote.


As always "The devil is in the detail" ... however we now know a lot more than before, and the options for the future. There are many people hurting right now, and there are a large number of issues to work through - but now are we seeing a light at the end of the tunnel? ... or is someone just shining a torch in our face? Only time & detail will tell !!!

More detail shortly.
Dan

We're CrazyAboutNewfoundland.com ... Are you?

Extended CCAA Period for Humber Valley Resort Corp. HVRC

So Humber Valley Resort Corporation (HVRC) filed for the CCAA process on 5th Sept-08. They were back in court 6th Oct-08, along with key creditor representatives including the HVR Owners, Home Construction, Marine Contractors and Maxium Financial Services (golf equipment providers) ...

The resort was looking for extension through to 5th Dec-08 ... which with various caveats ... was granted. There was various debate about the salaries (and extra payments) made to staff that have retained their positions. The punchline being, they keep their pay and agreed extra payments.

Maxim were providers of golfing equipment to the resort, and had an amazing $900k of kit on resort, which they are trying to recover - to no effect as far as the Honourable Justice Robert Hall was concerned! They will have to wait like the rest of us!

The punchline of the session, though with several specific statements and actions, did actually give Humber Valley Resort Corporation (and the other HVR companies) an extension through to 5th December 2008.

Now the HVRC (the resort) needs to present their "plan" ... and get all creditors to accept it.

ALL the key players are in London on Wednesday 22nd and Dublin on 23rd for a presentation by the CCAA Monitor, Derrick White and Jayne McGiven ... (see you there?) ... of the plan and the future ... It would be fair to say the week ahead - is ULTRA IMPORTANT to the future of the resort!

More after the London meeting!

Online newspapers - on the day they get printed !!!

Catch up with the news ... on the day it's printed!

New on CrazyAboutNewfoundland.ca ... No need to buy a paper - catch up with the news at home, or where you want. You can now open and read the Western Star on the day it's printed! You can even download the papers and keep them, or subcribe for a daily update of your favourite paper.

The Daily Telegraph	The Western Star
The Mail on Sunday	The Telegram

Visit CrazyAboutNewfoundland.ca/newspapers to find a wider range of newspapers from around the world. So next time you're travelling you can keep up with home ... or when at home you can see what's making the news in the places that interest you!

Credit crunch ... and the wife?

Credit crunch quote (from a city trader in London this week):

"This is worse than divorce.
I've lost half my net worth, and I still have a wife!"

So what is the impact of the credit crunch on Humber Valley Resort?


Answers on a postcard (as they say in the UK), or for HVR Owners ... www.hvrowners.com

Strawberry Hill sold?

So Strawberry Hill was for sale - not for sale - and then for sale again. Originally on for $6.7M CAD in March-08, Strawberry Hill resort was offered by tender as part of the CCAA process.

The tender period closed this week ... so we now have to wait and see what happens next. However the strong rumours are that atleast two parties were actively interested.

I'm guessing that $6.7M is now wishful thinking ...