Mountain World pursues ‘proposal’
Notice issued to creditors of 30-day financial solution
By Paul Andrew
Whistler’s Mountain World Entertainment Ltd. filed a "notice of intention to make a proposal" to its creditors April 15.
The notice produced an immediate stay against the company’s creditors, preventing them from taking any action against the company for an initial period of 30 days.
"We are currently focusing on means to arrange a financial re-structuring to resolve financial issues facing the business," Glenn Fawcett, president, CEO and director of marketing for the entertainment centre said in a release.
Deloitte & Touche is acting as trustee of Mountain World’s proposal to its creditors. Donna Matheson, an employee at Deloitte & Touche, said the process is part of the Bankruptcy Act, but not necessarily bankruptcy.
"They have to get 50 per cent of the creditors on the list to agree to a proposal and those creditors must have 75 per cent of the total dollar value. So nobody can take legal action until the 30 days is up. As soon as they have that proposal ready, we send it out and call a meeting of creditors," Matheson said.
"We’ve actually got a fairly high success rate with these things," Matheson added.
A list of money owed has been circulated to Mountain World’s creditors. Topping the list is Accel Capital Corp. of Vancouver, which are listed as crediting Mountain World with more than $468,000 worth of merchandise and services. The Royal Bank is owed $193,000 and Newcourt Financial is owed $105,000.
Fawcett is also listed as a creditor, with some $68,000 being owed to him. The Whistler Resort Association, which rents the space below the conference centre to Mountain World, is owed $25,000.
In the meantime, Mountain World remains open for business and the company intends to keep operating.
Mountain World opened in November of 1997. The location-based entertainment centre includes numerous state-of-the-art interactive and virtual technology games as well as a restaurant, bar, artificial climbing wall and other traditional games. The company raised nearly $4 million in equity and $1 million in debt and lease arrangements prior to opening. Mountain World Entertainment Ltd. is a public company, traded on the Alberta Stock Exchange.
Fawcett has said that B.C.’s restrictive liquor licensing system has been a problem for the entertainment centre, as the licence he currently has restricts patrons to the bar area while they are drinking. He has sought the transfer of the WRA’s A licensed seats, which would allow patrons to drink throughout the facility, but has been turned down.
"We are currently working with local and provincial authorities and have been for some time, to find a pro-active solution to our urgent need for a liquor license that allows integration of gameplay and alcohol consumption," Fawcett said in the release. Two independent surveys commissioned by Mountain World support transferring the A licensed seats to the entertainment centre.