Thursday, October 23, 2008

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.

We're ... Are you?

1 comment:

Anonymous said...

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