Sunday, December 14, 2008

What if Newfound NV want HVR back?

New investors in Newfound NV injected cash specifically into Humber Valley Resort in Summer 08, but appeared to fail in its due diligence, and quickly realised that all was not as it originally seemed. By September 08 Newfound NV had taken HVR into (CCAA) administration and then by December 08 into bankruptcy, openly blaming the provincial government for its predicament - blame which in turn and equally openly the government rejects point blank. [see Western Star article]

But what next?
Hopefully new owners and operators of the resort will be found quickly, and that will work properly with the chalet owners, the local communities/businesses, and the provincial government.

But what if Newfound NV want HVR back?
It's not impossible! Has the whole process been staged to clear the creditors and "start again"? Lets hope not, as all involved need the main operators of the resort to be passionate about Western Newfoundland and the Humber Valley, not just their shareholders.

Above all, if the goal is not to attract tourists and guests to the area - it's not going to work. We've suffered four years of inbalance between schmoozing potential investors, and attracting real holiday makers, resulting in actually the main visitors being the owners and their friends and family.

So how would everyone react if Newfound NV (or one of its partner entities) tries to buy back the resort out of bankruptcy?

Rumours abound!!!

What do you think? If you've got a view, hit the comments link below!!!


Anonymous said...

I don't think that should be an option for Newfound...they've had the opportunity to invest already and they didn't want to make it happen. I say let someone (or some company) that cares about the Resort, the area, and the people have the opportunity to make the dream a reality!!! The Resort needs someone who is passionate about Newfoundland and it's tourism industry, whether that be a Newfie or a come-from-awayer, without the passion it won't work.

Anonymous said...

Not welcome
There has been some talk that Newfound NV could be in a position to actually buy the back the resort as part of the bankruptcy process.

Burch said Newfound NV is not wanted back.

“That would be a travesty,” said Burch. “They have walked away from their commitments to the owners, from their debts to the local businesses and from community and they haven’t demonstrated any commitment to the resort, to the island or to making a success of this place.

“Jane McGivern (Newfound NV’s chief executive officer) is on record in interviews published in property press in Europe that she’s not interested in running a resort — that she’s a property developer. My message would be to go develop your properties and leave us to get on with finding a way to make this resort work without your interference and getting in the way.”

Burch said repairing the resort’s damaged reputation will be the goal of the owners, though he has no idea how that will be done or how long it will take.

“This isn’t the end,” he said. “This is a new beginning. It’s an opportunity for competent management to be brought in and do the job properly and that will make an enormous difference.”

Read the Western Star article