Monday, December 08, 2008

Goodbye Newfound NV

The formal press release from Newfound NV today, was the final goodbye from Humber Valley Resort's (ex-)parent company. Now it's down to the court and it's nominated representatives.

The Newfound NV release follows:

Newfound N.V.

Humber Valley Resort Corporation - update

Newfound N.V. (AIM: NFND) announces that its subsidiary, Humber Valley Resort Corporation ("HVRC"), has filed for bankruptcy following the expiry of proceedings under the Canadian Companies Creditors Arrangement Act ("CCAA") initiated in September2008.

This action does not impact either the financial situation of Newfound NV or the projects at St. Kitts and Nevis, which remain unaffected.

Stephen Bentley, Group Finance Director of Newfound, said: "It was not our original intention that HVRC should make an application for bankruptcy. Indeed we had formulated a draft preliminary plan of arrangement that, in our view, gave the interested parties the best result given the unhappy circumstancesthat Humber Valley Resort Corporation found itself in.

However, our plans required and depended on support from the Government of Newfoundland. Their support was needed specifically with regard to flights to Newfoundland from the UK; support for the municipality that would administer basic services to the resort; and finally, a grant of freehold by the government over the portions of long leasehold land already paid for by HVRC. Whilst initial discussions appeared to be fruitful, in recent weeks it has become clear through media reports and correspondencewith the company, that the Government of Newfoundland would prefer that the resort goes into bankruptcy before they make a decision on their future involvement with HVRC.

In these circumstances, and with Newfound continuing to finance the CCAA process each month, the Board feels it is not appropriate for Newfound to carry on spending significant sums of money where there appears to be little or no prospect of bringingthe process to a firm resolution. We therefore have no alternative but to allow the CCAA process to lapse and for HVRC to file for bankruptcy. I deeply regret that this has come to pass and that Newfound, as the largest fiscal creditor, now joins thewider list of creditors awaiting the outcome of the bankruptcy process."

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