Stephenville airport has a new owner, as transfer to Dymond Group is finally signed

The Dymond Group of Companies has closed a deal to acquire Stephenville International Airport, nearly two years after announcing a suite of ambitious plans for western Newfoundland.

"I know what it feels like to be away from home and the joy of getting back to family and community," CEO Carl Dymond said in a press release issued Monday morning.

"We hope this venture is a way home for the many families who had to leave the Bay St. George area. We're hosting an open event at the airport in the coming weeks to discuss shared success over a cup of tea."

A document transferring ownership of the airport to Dymond was filed at the provincial registry of deeds and companies late Friday afternoon. It was signed by Stephenville Airport Corporation chair William MacNeil.

The finalization of the transaction was a long time coming;the initial deadline was the end of 2021, but the process dragged on, in part because of a historic insolvency proceeding involving the airport. That was finally resolved this spring.

The way is now clear for Dymond to follow through on commitments he first expressed at a press conference in Stephenville on Sept. 9, 2021.

That included a manufacturing facility to build unmanned drones the size of a Hercules "some of the biggest in the world," he said 117 feet long and80 feetwide, with the ability to carry 52,000 pounds of cargo.

"We're pledging to keep commercial aviation in Stephenville," Dymondalso said at the time.

"What we want to do is we want to be able to bring these major airlines in here again. We want to put bums in seats."

And he said his planswould mean a major injection of private-sector money.

"We're also going to contribute an early investment of $200 million into the airport infrastructure, and to the community," Dymondsaid. That included a new fire hall for Stephenville.

Asked by CBC News in 2021 about job projections associated with his plans, Dymond said it could mean up to 5,000 workers "over the next couple of years."

Sale price confirmed at $6.90, plus settling liabilities

According to the sale transfer documents, the Ottawa-based Dymond is acquiring the airport for $6.90, plus the payment of just over $1 million in existing liabilities.

CBC News first reported those numbers a year ago, in a report that a Dymond official described as "inaccurate."

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Included in that$1.1 million in liabilities is a provincial loan guarantee that has helped keep the airport afloat over the years.

That guarantee is capped at $900,000. Last fall, Dymond told CBC News there was then about $775,000 owing.

Provincial officials have repeatedly stressed to CBC News that taxpayers won't be on the hook for that liability as part of any sale of the airportand that the financial backstop "will not be extended to other entities."

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At 3:01 p.m. on Friday, the Department of Industry said the province would be notified by the airport corporation's lawyers when the sale has closed, and proceeds of the sale will be held in trust to pay and close the line of credit.

"To date, the provincial government has not received such notification in relation to the line of credit," that email advised.

The document transferring the airport was registered at 4:32 p.m. the same day.

In response to followup inquiriesMonday, the province said it was notified"late Friday"that the necessary funds required to pay and close the Stephenville Airport Corporationline of credit had been received by the corporation'sfinancial institution.

Stephenville Airport Corporation chair William MacNeil confirmed Monday afternoon that the line of credit had been paid off, along with all other debts.

I feel positive about it, and I feel that actually it's been the right move for the board and the community to make this move at this time.- William MacNeil

According to MacNeil, workers at the airport met with Dymondearlierin the day.

"He introduced his team to our staff andmade a commitment that they were going to work diligently together to try to drive the airport forward with new initiatives, and hopefully we'll see some growth in the airport," MacNeil said in an interview.

MacNeil acknowledged that there is a "lot of emotion" in the town around the airport, and he hopes it will now be stabilized going forward.

"I feel positive about it, and I feel that actually it's been the right move for the board and the community to make this move at this time," he said.

Lottery winner backed deal, according to report

New details also emerged Monday about a previously-undisclosed financial backer of the deal.

According to a report by business news website AllNewfoundlandLabrador.com,Matthew Poppel a Saskatoon man who won a $55-million LottoMax windfall two years agohelped settle those previous liabilities.

Public records inNewfoundland and Labrador show a$1.1-million mortgage, secured by the airport property, registered with a Dymond company as the mortgagor (borrower)and Poppel as the mortgagee (lender).

CBC News left a message Monday afternoon with the Saskatoon-based law firm listed as representing Poppel, seeking comment about his role in the airport deal.

Dymond, meanwhile,did not return interview requests from CBC News.

He told the WreckhousePress community newspaper that infrastructure such as hangars will be brought in over the next few weeks to attract airlines.

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