Bank owed $3.3M wants court to appoint receiver for Terra Nova Golf Resort

The lawyer for a federalbank owed$3.3 million by the Terra Nova Golf Resort wants a courtto get involved with receivership proceedings as quickly as possible,so that the course can be sold before the start of the golf season.

"The sooner we can have it heard, the better," Neil Jacobs said during a brief hearing at Newfoundland and Labrador Supreme Court on Tuesday morning.

Jacobs noted that golf season starts in May or June.

The Business Development Bank of Canada (BDC) was in court seeking an order tomake BDO Canada Limited a court-appointed receiver for the assets and property of the resort and golf course located in PortBlandford, just west ofClarenville.

Last fall, BDO took control of Terra Nova as a privately-appointed receiver, at the request of BDC.

In general, privately-appointed receivers work on the behalf of the creditor who appointed them.

Court-appointed receivers represent the interests of everyone who is owed money.

• Terra Nova Golf Resort is in receivership
• With Terra Nova Resort in receivership, landowner Parks Canada watches and waits
• Receivership for Terra Nova resort is a worry for Port Blandford, says town's mayor

As of Oct. 31, 2018, the operator of Terra Nova Sports Villas Resort Inc. owed at least $8 million to creditors, according to documents filed by BDO last fall.

The provincial government was among the unsecured creditors, for a debt of $500,000. Thetown of Port Blandford was owed more than $70,000.

BDO listed Terra Nova as having $8.9 million in property and assets at the time.

Another company Twin Rivers Golf Inc. has since been added to the receivership proceedings.

According to court documents, that affiliated company held the leasehold interest in the golf course, and owns the golf cartsand maintenance equipment there.

Parks Canada owns much of the land where the course is located, and has a rental agreement that is supposed to run until 2031.

Terra Nova Golf Resort consists of an 80-room hotel, nine- and 18-hole golf courses, and several rental chalets.

The main creditor, the BDC, is aCrown corporation wholly owned by the federal government.

The matter is due back at Supreme Court in St. John's on March 12.

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