Jayne McGiven in talks for new development venture?

Jayne McGivern, who this week stepped down as chief executive of AIM‑listed leisure developer Newfound, is understood to be teaming up with Mikola Wilson to launch an opportunity fund.

McGivern, who was formerly head of Multiplex UK, relinquished her £500,000 pa role as chief executive of Newfound after plans to take the company private collapsed. She said: “Despite us getting shareholder approval for the privatisation, which would have helped us to raise cash, the move was scuppered at the last minute by our debt provider, [French hedge fund] Agilo, which demanded new lending terms that we find onerous.”

Sources said that McGivern was now in talks with Wilson, who runs niche investment firm Seven Dials Fund Management, to launch a new venture. It is expected to target high-yielding, income-producing assets with latent development potential. The new business is also being mooted to take over the day-to-day management of Newfound.

McGivern refused to comment on the new business.

www.egi.co.uk

McGivern steps down as Newfound warns of risk of collapse

Jayne McGivern has resigned as CEO of AIM-listed resort developer, Newfound, as the company warned of a risk of collapse.

Article on Property Week website

Newfound said that McGivren’s departure was a result of it restructuring of its operations and management to cut costs, and warned that without new funds, it would ‘cease operations’.
It said this morning: ‘Unless new finance can be found for the group over the coming months, there is a risk that the Company will exhaust its cash resources, in which case it will need to cease operations.’

McGivern, a former Multiplex UK chief executive who took over last year, will remain on the board of the company but be replaced in the interim as CEO by Stephen Bentley, who is currently the finance director.

The day-to-day management of the company will be outsourced to a management company, and then Bentley will step down from his role as CEO and finance director to become a non-executive director.

Richard Foley has also resigned as a director, but will remain an employee of the group overseeing Newfound’s Caribbean projects.

John Morgan, acting chairman of Newfound, said: 'It is clear in the current financial market that property development companies are struggling to raise capital to fund projects. Newfound is no exception to this and the board has decided that the company needs to restructure its operations and executive management to reduce its expenditure.'

___________________________

STATEMENT TO THE LONDON STOCK EXCHANGE

RNS Number : 1740O

3 March 2009
Newfound N.V.
('Newfound', the 'Company' or the 'Group')
Board Changes and Restructuring

Newfound N.V. (AIM: NFND) announces that Jayne McGivern has resigned as an Executive Director and Chief Executive Officer of Newfound NV with immediate effect. Ms. McGivern will however stay on the Board of the Company as a Non-Executive Director. Richard Foley has also resigned as a Director with immediate effect although he will remain an employee of the Group overseeing Newfound's Caribbean projects.

For an interim period, Stephen Bentley, who is the Finance Director, will also assume the role of Chief Executive Officer while the Board seeks to outsource the day to day management of the Group's activities with a management company or similar. Upon procurement of such a management contract, Mr. Bentley will step down as Finance Director and Chief Executive Officer and become a Non-Executive director.

John Morgan, Acting Chairman of Newfound NV, commented today:
'It is clear in the current financial market that property development companies are struggling to raise capital to fund projects. Newfound NV is no exception to this and the Board has decided that the company needs to restructure its operations and executive management to reduce its expenditure. As a result, Jayne McGivern moves to a non-executive role while Stephen Bentley will take over as CEO on a part-time basis whilst the Board looks to put in place a management contract.

Jayne will continue to have oversight of the plans for the Company's main assets in the Caribbean although, as a non-executive director, she will not work on the project day-to-day. I would like to thank Jayne for all her work during a very difficult period for the Company. She has achieved much in the last 6 months and I am delighted that we will retain her expertise on the Board.

I would also like to thank Richard Foley who has done sterling work on our Caribbean projects as the main planner behind the developments. Although Richard is leaving the Board, he will continue to oversee the Company's Caribbean projects.

Newfound remains a company with assets in the Caribbean that have real potential. I am pleased with the plans developed by the Company for those assets and with the progress made with the two projects. Nevertheless, it is a company with limited financial resources and the above board changes are designed to conserve those resources and allow it to maintain the priorities of continuing to service its debt, negotiating new finance and ensuring that the Company is well-placed when the development market recovers and credit becomes more readily available.

Unless new finance can be found for the Group over the coming months, there is a risk that the Company will exhaust its cash resources, in which case it will need to cease operations. The Board continues to evaluate the Company's financial options and will keep shareholders fully informed over the coming months.'


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HVRC to file for bankruptcy

The end of Humber Valley Resort (as we know it today) ...

With sadness I have to blog that today Humber Valley Resort Corporation (HVRC) announced that it is to file for bankruptcy. See below for their announcement email.

We can only hope that when everyone including creditors, owners and the local community (& its economy) have got through the next stages of the ongoing process ... what's left of the resort and everyone directly and indirectly involved with it, can grow into that vision and belief that we all had, and mostly still have.

We all share the passion of, & belief in, Western Newfoundland & its people. In fact We're Crazy About Newfoundland.com ... Are you?




Announcement email from Newfound NV:

December 2nd, 2008
Humber Valley Resort Corporation

Dear Owner,
You may recall from our presentation and earlier correspondence that, during the time Newfound has been financing the CCAA process, we also formulated a draft preliminary plan of arrangement that, in our view, gave the interested parties i.e. the creditors and the chalet owners the best result in the unhappy circumstances that Humber Valley Resort Corporation found itself in.

The plan that we had put forward asked the Government of Newfoundland to support it in 3 areas, namely;

* To assist in bringing flights into Newfoundland from the UK

* To work with the local Municipality in their takeover of running essential services on the resort

* Transferring into freehold, the amount of leasehold land that HVRC had already paid leasehold fees on, so that financing of new development could take place enabling the creditors to participate in the resultant profits.

It was not feasible to submit our proposed plan to the Court for approval, or to the creditors and chalet owners to vote on, unless we had some indication of support from the Government, in writing, to it. Conditional support would have been acceptable. The Government have had our proposal for consideration since 16 October. Whilst it is fair to say that we have had encouraging discussions, we have had no confirmation of the Government position, either verbally or in writing. Our initial requested deadline for a decision was 14 November. I was promised on Monday 24 November that, after the Cabinet meeting of 27 November I would be informed of the decision, either way, in writing. I explained during that conversation that we had run out of time as our CCAA protection was due to expire and if I could not submit the plan then I would have no choice other than to withdraw our proposal, which would mean imminent bankruptcy for HVRC. The alternative would be for Newfound to risk a great deal more money as a creditor to HVRC and I do not have Board authority to do so. I was very careful to stress to the Government on Monday 24 November, that I wanted to and was able to continue, but was clear that close of business on Friday 28 November was our absolute deadline for a Government reply. This was, sadly, not forthcoming. I understand, from a third party, that the proposition was discussed as cabinet but there was no resolution. Despite our best efforts, there is nothing further we can do. I am deeply disappointed, as I still believe our ideas were the best possible result in the circumstances.

In these circumstances, I am afraid that we join you all as another creditor, and confirm that HVRC will have to file an Assignment in Bankruptcy, and that bankruptcy is now imminent. I am so sorry not to bring you better news. Should you have any questions, you may, with immediate effect, address them to Mat Harris and his team at Ernst and Young. Derrick White will no longer be in a position to formally help you.

Yours sincerely,
Jayne McGivern
CEO Newfound NV

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!

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.
DG

__________________

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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HVR News - But is it good or bad news?

Newfound's new CEO Jane McGiven has visited Humber Valley Resort, and announced the company's re-focused direction and mission statement. An email to owners gave an outline of what's to come - and those wanting change - have got it!

The first question is, is it good or bad news?

Key initial points
* Newfound wants to retain the operation of the resort within the company
* The primary focus will be to build high-end chalets
* Tennis courts are among the new services to be added
* Focus on completion of the road system, cycle paths and verge landscaping
* Reduce the property sales activity - to create a more controlled build plan

All of which seems good news. But the email went on ... to announce, with effect at the end of the next winter season, the closure of the resorts rental pool and vacation business. Not in the email, but clearly by inference, this also means the UK to Deer Lake charter flights also stop at Easter 2009.

The email then invites owners to make their own arrangements for renting their chalets, and re-states that Newfound's core business should be the development of great chalets in a well run and attractive wilderness resort.

"A well run resort" ... with no holiday makers? and no way to get there?

The announced changes leave a lot of questions, and will effect a lot of people including resort staff. Is it good news or bad? It certainly seems bad news (at this time) for most owners and many of the staff. However so would have been "no change" ... and time will tell, as the story will continue to unfold.

As a postscript - Jayne McGiven also met Tom Marshall the provisional finance minister and local MHA representative, and apparently made it clear that the company would not continue to fund the only tourism flights from Europe, and reinforced that if tourism is to succeed the provisional government needs to take a much more active role. I also hear that her suggested solution is the resumption of the London to St Johns route. (Not that great for Western Newfoundland in my opinion).

There will no doubt be more news (good & bad) and thoughts in the near future!


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The Times: Business big shot: Jayne McGivern

Jayne McGivern thinks big and tends to act quickly. Barely four months have elapsed since the former UK chief executive of Multiplex left the development group — best known for the troubled construction of the £757 million Wembley Stadium — after its takeover.

At an annual general meeting this week Ms McGivern will be taken on formally as chief executive of Newfound, an AIM-listed developer that plans to shake up the Caribbean islands of St Kitts and Nevis. Its projects involve 430 acres of undeveloped land on Nevis and a 40 per cent share of Ocean's Edge, a luxury villa project on nearby St Kitts, as well as a partly built golf and luxury chalet resort in the Humber Valley, eastern Canada, valued at about £50 million. The Nevis project, Pinney's estate resort, has approved plans for 300 beachside villas expected to be priced at about £1 million each, set around a luxury hotel.

Starwood, the US operator, is thought to be in line to build and run the hotel, but Ms McGivern may yet stitch a deal together on this and other possible projects with Kerzner, the hotel operator, aided by a long working relationship with Sol Kerzner, the company's founder. That developed from her time running the UK arm of Anschutz Entertainment, the US-owned business involved in the Millennium Dome, which she left before joining Multiplex in late 2005.

Ms McGivern has invested £1 million of her own money in Newfound in return for a long-term incentive scheme that could see her own 12.5 per cent of the company.

She has invested alongside a £15 million cash injection into Newfound by way of convertible loan stock from Agilo, a niche private equity firm founded by Jason Granite, a former Deutsche Bank restructuring expert. Its backers include Steve Norris, the chairman of Jarvis and former Tory candidate for London Mayor.

Full article: The Times 23rd May 2008

Related Links: (The Times) Jayne McGivern quits as chief of Multiplex UK - Pipl research on Jayne McGivern

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