Judge Assigns Interim Receiver to Oversee Stephenville Airport
A Newfoundland and Labrador Supreme Court judge has recently appointed an interim receiver for the Stephenville Airport. This decision stems from serious operational issues affecting the facility, including a lack of power and security. Justice Alexander MacDonald expressed his concerns, noting the airport’s deteriorating condition.
Interim Receiver Appointment Details
The judge appointed Janes & Noseworthy Ltd. as the interim receiver for a period of 30 days. Their primary responsibility will be to safeguard the airport’s assets and reinstate insurance coverage, which had lapsed before the facility lost power in June 2022.
Background of the Case
BTG Capital Inc., a Calgary-based private equity firm, initiated the application last week. At the first hearing, the judge decided to delay proceedings to review a letter of intent between BTG and the owner of the airport, 15132738 Canada Inc. The judge affirmed that the agreement did not prevent BTG from calling in a loan related to the property.
- Amount owed: $2.5 million
- Previous judgment acquired by BTG against Carl Dymond, the director of the airport owner
Legal and Operational Issues
During the court session, Trevor Stagg, the attorney for the airport, claimed that BTG’s actions hindered potential funding options for Dymond, who was seeking a partnership to revitalize airport operations. Stagg presented text messages from Dymond highlighting urgent concerns about freezing pipes and overall power issues.
William Cahill, representing BTG, argued that Dymond’s company lacked the resources to maintain basic operations at the airport. He emphasized that neglecting the situation could further degrade the airport’s assets.
History of Stephenville Airport
In September 2021, Carl Dymond announced plans to acquire the airport, a deal that was finalized nearly two years later for $6.90, alongside assuming about $1 million in existing debts. Dymond aimed to create thousands of jobs and attract significant investment to the area.
- Status downgraded to a registered aerodrome in March 2022
- Effective closure occurred when electricity was disconnected in June 2022
Ongoing Financial Challenges
Currently, the airport faces numerous financial liabilities, including:
- A $2.4 million lawsuit related to unpaid runway light bills
- Outstanding property taxes estimated at $500,000
- Unpaid taxes amounting to over $820,000 claimed by the Canada Revenue Agency
The future of Stephenville Airport remains uncertain as the interim receiver works to stabilize the facility’s operations. The quickly approaching 30-day deadline set by the court will determine the next steps for this vital asset in western Newfoundland.
