Showing posts with label Humber Valley Resort. Show all posts
Showing posts with label Humber Valley Resort. Show all posts

Sunday, June 13, 2010

Humber Valley Emerges From the Ashes

PRESS RELEASE HUMBER VALLEY RESORT

Noton Enterprises Limited, a numbered company, 61839 Newfoundland and Labrador Limited, and Oke Consultants Limited, all locally owned companies, have formed a joint venture partnership and have purchased the assets of Humber Valley Resort. The new owners intend to operate and manage the Resort under a new corporate entity: Humber Valley Resort Corporation (2010). I, Katie Watton, will be the Public Relations Director, Gary Oke the Managing Director of Operations and Graham Watton, Q.C., General Counsel looking after all corporate and legal matters.

We will be focusing on making that which is already on site work properly so that the Resort can become the success it already has the potential to be. First let me state that Humber Valley Resort is one of the best things that has happened to the West Coast of this beautiful Province. The vision was and still is spectacular, unfortunately the execution was less so, but that is the past. We have to put the past behind us and move forward. All that the Humber Valley and the West Coast has to offer is still here and that hasn’t changed - the scenic beauty and renowned hospitality which attracted people to come here in the first place remains. We intend to promote and develop Humber Valley Resort as a 4 season Resort Destination.

We do not intend to move away from the Resort concept. However, we are confident that by combining permanent residents and seasonal and holiday residents we will attain the best of both worlds and a perfect balance.
A major concern for many of the successful resorts in Western Canada - Fernie, Panorama, Golden, Radium Hot Springs, Kimberly and the like is that chalets are sold exclusively as second or vacation homes and the resorts become desolate ghost towns in the off season.

These resorts are now moving to a mixed residency, both permanent and seasonal residents, and we are convinced that by using this approach we will avoid these “down periods” and maintain the Resort’s vibrancy.

Some of the Humber Valley Resort’s permanent residents are former vacationers who fell in love with our community, the people, the scenery, our warmth, culture and our way of life.

People from all over the world call Humber Valley Resort their home. For some, it is a vacation retreat, and for others it is a permanent residence. As a resident of Humber Valley Resort your neighbours are from all over the world - England, Ireland, Switzerland, Germany, various other places throughout Europe, various parts of Canada and Newfoundland. An exciting and stimulating mix of ideas and cultures.

We will shortly be meeting with the chalet homeowners association to work out and arrange a smooth transition and takeover of the operation, management and provision of all of the essential services to the Resort. A lot of work has to be performed to improve and upgrade the existing services, the roads, the communications, etc. We will start immediately.
With our very capable team which we will shortly be putting into place and under the supervision of our capable Managing Director, Gary Oke, we will get the Resort’s Golf Course in shape as one of the best golf courses in Canada. The Resort and the golf course, which is an 18 hole, Par 72 championship golf course, has won some excellent awards in the past - Humber Valley River Golf Course voted “Canada’s Best New Course 2007" - voted Worldwide Resort of the Year 2006 and 2007 - Best New Canadian Course, 3rd place - Best New International Course. Under the capable management of Gary Oke we intend to win further awards for the Humber River Golf Course and the Humber Valley Resort.

The cost of the green fees will be reasonable - we intend to attract more members, visitors, golfers and tourists, who hopefully will come for several days - possibly weeks - and stay at the chalets at the Resort and vacation throughout Western Newfoundland and the Northern Peninsula, bringing economic benefit throughout the region.

Maintenance and rental of some of the chalets are presently being serviced and rented by a number of rental and management companies, including some owners themselves. We will shortly meet with these firms and individuals and the chalet homeowners association. We will consult with the chalet homeowners association and will have discussions with all of the interested parties with respect to the various property maintenance and rental management scenarios which are available and what would be in the best interests of the chalet owners, Humber Valley Resort and the people visiting and staying at the beautiful chalets in Humber Valley Resort.
We will also shortly be working towards getting the Eagles Perch Club House building up and running and available for special events, meetings, conventions, weddings, and the opening of the Dining room, the bar, and the golf shop. We have plans to provide themed events at the Eagles Perch at various times of the year and to providing seminars and weekends to include culinary instruction, wellness and personal development, and golfing seminars, etc. Within a short period of time we will be creating between 30-40 new jobs.

With the purchase of the Resort assets, the new owners have also purchased all of the intellectual property, copyright, trademarks of Humber Valley Resort. Humber Valley Resort has also in the past been honoured with 3 substantial website awards. The Resort also took top honours at the Silver Spider Web Awards. Humber Valley Resort walked away with awards for both site promotion and best overall site. We will be updating the website of Humber Valley Resort.

We will be giving serious consideration to a 4 star hotel in the Resort’s future plans, and incorporating and taking advantage of the Provincial Government’s Incentive Tax Credit Program. We are well aware of the recent announcement and the various comments concerning the proposed Resort developments in the Steady Brook area and we wish the developers every success.

However, we strongly believe there is room in the Humber Valley Resort for a 4 star hotel-condominium complex. We have the location, the infrastructure, the international world class golf course and the spectacular
Eagles Perch Club House, its Dining and conference facilities, meeting and banquet rooms and available lands adjacent to Eagles Perch which can accommodate the construction of a 4 star hotel-condominium complex.

We are not making any big promises, however, we do realize that to take advantage of the Provincial Government Incentive Tax Credit Program, we will have to make a decision on the 4 star hotel-condominium complex within the next 12-18 months.

We will consult with all stakeholders and keep them informed - the chalet homeowners association - the chalet owners - the Provincial Government - the Department of Tourism - Hospitality Newfoundland and Labrador - the various municipal councils throughout the Humber Valley region, Western Newfoundland and Northern Peninsula.

We intend to provide the chalet owners association, the chalet owners, all of the stakeholders, and the public with thorough and honest communication in all aspects of the Resort’s operation to instill confidence and trust in the Resort and its new owners.

Our goal is to get the Resort and golf course back into operation and further develop and promote the Resort as a four season Destination and an upscale residential community.

We have had an opportunity to recently review the Provincial Government’s long-term vision and plan which was released last February, titled Uncommon Potential - A Vision for Newfoundland and Labrador Tourism”, which provides a framework to guide both the Provincial Government and their industry partners as we all work together to advance tourism in Newfoundland and Labrador through to 2020.
As the Premier said in his message and opening remarks in the Plan:
“As residents, we know our province is a special place, unlike any other. Similarly, we recognize that the opportunities and challenges we face are unique to Newfoundland and Labrador. This plan is designed to address the challenges and make the most of our competitive advantage in the global tourism marketplace - the fact that we offer unique travel experiences to visitors interested in taking an exciting adventure off the beaten track.
In Newfoundland and Labrador, surprises wait around every corner and the possibilities are endless - hiking the stunning coastlines, attending festivals celebrating everything from blueberries to squid, experiencing our rich and vibrant culture and heritage, witnessing natural wonders such as whales and icebergs, and meeting strangers who quickly become friends. Living here, it is sometimes easy to lose sight of the fact that these are, indeed, “uncommon” experiences.”
I would also like to refer to another couple of paragraphs noted in the Plan under the heading of Transportation Strategy to Grow Our Industry:
“For Newfoundland and Labrador, there’s no such thing as an accidental tourist. It takes deliberate planning and determined effort to visit here.
The transportation issues facing tourism in Newfoundland and Labrador are well understood and frequently articulated among industry stakeholders. In short, travel to, from, and around the province, whether by sea, air, or road is constrained by issues of affordability, capacity, infrastructure, and quality.
To compete effectively in an increasingly aggressive global market, we need the ability to bring travellers to the province in an easy, cost-effective, and pleasurable manner - by sea, by air, and by land. There is an immediate requirement for improved, affordable, and efficient access to and within the province. It’s the most critical element to stimulate inbound tourism. And it will have considerable influence on our industry over the next decade.
Access by Air. Air passenger travel accounts for approximately two-thirds of non-resident visits each year. Our response to strategic transport challenges identified in the Government of Newfoundland and Labrador’s ‘Air Access Strategy’ and through other forums is vital to the future success of our industry.”
We will work with the Provincial Government, Hospitality Newfoundland and Labrador, and all of the stakeholders in promoting Humber Valley Resort and our beautiful province of Newfoundland and Labrador.

The total annual budget being spend by the Provincial Government for tourism marketing is now 13 Million (from 6 Million in 2003). The tourism industry contributed almost 850 Million to the provincial economy in 2008, up from 790 million in 2007.
The Provincial Government is very committed and is doing an excellent job in marketing Newfoundland and Labrador nationally and internationally. The Provincial Government’s campaign continues to fulfill their main objective - promoting Newfoundland and Labrador as a Destination of Choice. As recently as February 1 of this year in New York City, Newfoundland and Labrador’s “Find Yourself Home” television campaign which was developed in collaboration with Target Marketing and Communications Inc., was awarded platinum honours at the Adrean Awards Gala. (I would further note that only 20 platinum winners were named from more than 1,100 entrants during the award ceremony.

Humber Valley Resort, the chalet owners, Humber Valley and Western Newfoundland will all benefit as a result of the tourism marketing on the part of the Provincial Government. We all have to play our role. We are all ambassadors on behalf of the Province. We want all of the public to know, people throughout Humber Valley, the Province of Newfoundland and Labrador, throughout Canada, the United States, Europe, nationally and internationally, that we are open for business - the security gate is not a barrier - the staff are there to welcome you - come visit us - play on our international golf course - fish in our world class salmon river, the Humber River - enjoy our cuisine, interact with the local residents - stay in the beautiful chalets on the Resort - take in the spectacular views of the Valley - experience our culture, our ideas, our way of life - do what I did. I came here 35 years ago from London, England, for the experience, for a 3 month period, and here I am 35 years later. I stayed for the lifestyle.

And that is our vision - “Come For The Experience, Stay For The Lifestyle”.

Thank you.

Thanks to Crazy About Newfoundland for this information.

Wednesday, March 18, 2009

Newfound in Risk of Collapse


Jayne McGivern has resigned as CEO of AIM-listed resort developer, Newfound, as the company warned of a risk of collapse, according to a report in Property Week Magazine

McGivern will be best known for being at the helm when Newfound called time on its involvement with the Humber Valley Resort in Newfoundland, Canada. 

Newfound, which now concentrates on its developments in the Caribbean, said that McGivren’s departure was a result of it restructuring of its operations and management to cut costs. At the time the company warned that, without new funds, it would have to ‘cease operations’.

The Property Week piece quotes Newfound as saying: ‘Unless new finance can be found for the group over the coming months, there is a risk that the Company will exhaust its cash resources, in which case it will need to cease operations.’

Further information from the article:

McGivern, a former Multiplex UK chief executive who took over last year, will remain on the board of the company but is to be replaced as CEO by Stephen Bentley, who is currently the finance director.

The day-to-day management of the company will be outsourced to a management company, and then Bentley will step down from his role as CEO and finance director to become a non-executive director.

Richard Foley has also resigned as a director, but will remain an employee of the group overseeing Newfound’s Caribbean projects.

John Morgan, acting chairman of Newfound, said: 'It is clear in the current financial market that property development companies are struggling to raise capital to fund projects. Newfound is no exception to this and the board has decided that the company needs to restructure its operations and executive management to reduce its expenditure.'

Ends.

Crazy About Newfoundland reports that McGivern is understood to be teaming up with Mikola Wilson to launch an opportunity fund. Wilson runs niche investment firm Seven Dials Fund Management. The new fund is expected to target high-yielding, income-producing assets with latent development potential and is also being mooted to take over the day-to-day management of Newfound.

Meanwhile, over at Humber Valley Resort there are signs that the 'green shoots of recovery' may be in the air. The Crazy About Newfoundland blog reports that there are two bidders vying for the assets of the resort.

The blog reports that "A management group led by a chalet owner has confirmed it has made a bid to buy Humber Valley Resort’s assets."

"The deadline for the tender call for the bankrupt resort’s properties — including the golf course, restaurants, land and other holdings — closed Friday, and the resort’s trustee in bankruptcy now has until March 16 to decide what to do with the bids. The trustee, Ernst and Young, won’t say how many bids have been received, but a bid has been made by a group led by Brian Dobbin, the man who founded the resort that went into bankruptcy in December."

"At least one other bid has also been made. A management group that includes Mike Ward and some other owners, in a prepared statement to The Western Star Tuesday, said its plan recognizes the “misguided focus” and the problems of the previous management teams, and knows what is needed to turn the resort around."

The full blog is available here

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Wednesday, December 10, 2008

Humber Valley Declares Bankruptcy

Those of you who have read our previous blog on the precarious financial situation at the Humber Valley Resort (HVR) near Corner Brook in Newfoundland, will not be surprised to hear that the company has officially declared bankruptcy.

Below is the announcement from Newfound NV (thanks to Crazy About Newfoundland for this):

December 2nd, 2008
Humber Valley Resort Corporation

Dear Owner,

You may recall from our presentation and earlier correspondence that, during the time Newfound has been financing the CCAA process, we also formulated a draft preliminary plan of arrangement that, in our view, gave the interested parties i.e. the creditors and the chalet owners the best result in the unhappy circumstances that Humber Valley Resort Corporation found itself in.

The plan that we had put forward asked the Government of Newfoundland to support it in 3 areas, namely;

* To assist in bringing flights into Newfoundland from the UK

* To work with the local Municipality in their takeover of running essential services on the resort

* Transferring into freehold, the amount of leasehold land that HVRC had already paid leasehold fees on, so that financing of new development could take place enabling the creditors to participate in the resultant profits.

It was not feasible to submit our proposed plan to the Court for approval, or to the creditors and chalet owners to vote on, unless we had some indication of support from the Government, in writing, to it. Conditional support would have been acceptable. The Government have had our proposal for consideration since 16 October. Whilst it is fair to say that we have had encouraging discussions, we have had no confirmation of the Government position, either verbally or in writing. Our initial requested deadline for a decision was 14 November.

I was promised on Monday 24 November that, after the Cabinet meeting of 27 November I would be informed of the decision, either way, in writing. I explained during that conversation that we had run out of time as our CCAA protection was due to expire and if I could not submit the plan then I would have no choice other than to withdraw our proposal, which would mean imminent bankruptcy for HVRC. The alternative would be for Newfound to risk a great deal more money as a creditor to HVRC and I do not have Board authority to do so. I was very careful to stress to the Government on Monday 24 November, that I wanted to and was able to continue, but was clear that close of business on Friday 28 November was our absolute deadline for a Government reply.

This was, sadly, not forthcoming. I understand, from a third party, that the proposition was discussed as cabinet but there was no resolution. Despite our best efforts, there is nothing further we can do. I am deeply disappointed, as I still believe our ideas were the best possible result in the circumstances.

In these circumstances, I am afraid that we join you all as another creditor, and confirm that HVRC will have to file an Assignment in Bankruptcy, and that bankruptcy is now imminent. I am so sorry not to bring you better news. Should you have any questions, you may, with immediate effect, address them to Mat Harris and his team at Ernst and Young. Derrick White will no longer be in a position to formally help you.

Yours sincerely,
Jayne McGivern
CEO Newfound NV

Oddly enough if you visit the Newfound website you will still find the company extolling the virtues of the Humber Valley Resort. In the investor relations section it states:

"Newfound is a creator and operator of international luxury resorts and destinations. The Company has a high quality portfolio of resort projects at Humber Valley in Canada and in Nevis and St. Kitts in the Caribbean.

Humber Valley Resort, with 2,200 acres, currently has over 200 privately owned properties the majority of which are available for rent. It is an all-season, luxury resort offering golf, world-class salmon fishing, sailing, skiing and a luxury spa.

Newfound has an integrated business model based on destination master-planning, which generates revenues from multiple sources, including freehold land sales, construction and development, services to owners, the provision of leisure activities and the operation of concessions. Newfound is building an industry leading, world-class luxury lifestyle brand offering exceptional holiday experiences in luxurious homes, situated in locations of outstanding natural beauty.

Newfound's shares commenced trading on AIM on September 26, 2006. Newfound N.V. is incorporated in the Netherlands with operations in Canada, St Kitts & Nevis, UK, USA, Netherlands and Germany. "

It is possibly time to take all this waffle off the site as the company, while it may have an 'integrated business model', very obviously doesn't have a business model that works in this day and age.

According to the Resorts section of the Newfound site:

"To date, Humber Valley Resort has sold over 400 vacation properties to buyers from the UK, Ireland, Europe, the US and mainland Canada. More than 200 chalets are completed with several others under construction. In addition, the resort has recently released a number of beautifully finished and extremely spacious one- and two-bedroom apartments. The majority of properties are available for holiday rental and benefit from first-class services and amenities including fine-quality appliances, furnishings and linens, whirlpool baths, saunas and outdoor hot tubs."

The board of Newfound are:

Jayne McGivern, Chief Executive Officer
Stephen Bentley, Group Finance Director
Richard Foley, Development Director
John Morgan, Interim Chairman
Robert Weisz, Non-Executive Director

The closure of the Humber Valley Resort is a great shame as it was a wonderful place to visit and will be a great loss to the Corner Brook area of Newfoundland. It is also obviously a time of great distress to owners of property on the resort, some of whom lived there full time, who bought into the dream only for it all to dissipate in front of their eyes.

Should this bankruptcy affect you in any way Newfound can be contacted at its Global Corporate Office:

42 Bruton Place, London W1J 6PA
Telephone +44 (0) 20 7892 8300
Fax +44 (0) 20 7892 8301
Email: headoffice@newfoundnv.com

If you are looking for updates on the Humber Valley story you'll find Gary Kelly's blog and the Crazy about Newfoundland blog to be exceptional resources.

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Saturday, October 25, 2008

Humber Valley Turns the Lights Out

It is with great regret that we learn of the near demise of the Humber Valley Golf Resort near Cornerbrook in Newfoundland in Canada. If you visit the company's homepage today you'll merely get an announcement that it has filed for protection from its creditors. This means that, barring a miracle, the company and its assets will be liquidated.

This is most unfortunate on a number of levels. Of course it will come as a huge blow to owners in the resort, but Humber Valley was much more than just your typical resort. Apart from being a wonderful golf course and a spectacular holiday resort, it provided lots of much needed employment in an area of Canada that didn't have very much of it. The resort helped keep builders, maintenance crews, golf course professionals, bar & restaurant staff, food and materials providers and even staff at the local Deer Lake airport in employment. The announcement will come as a huge blow to the entire region.

We visited Humber Valley for a week in April '07 and had a wonderful time while there. The staff were courteous and efficient (with wonderfully weird Waterford/Canada accents) and it was very much a 'different' type of holiday from your average getaway. The resort's passing, should it come to pass, will be very much regretted. It would have appeared last year that the resort was on the path to great things with it's golf course being voted the best in all of Canada for 2007.

It is difficult to know whether the demise has come about because of the credit crunch or merely poor management of the resort. Brian Dobbin, on who's concept the resort was originally developed, moved on last year, and the remaining owners would appear to have found that the resort was simply not viable as an on-going concern.

It is to be hoped that the problems at Humber Valley won't have a similar affect on Newfound Property's sister resorts in the Caribbean, Pinney's Estate and Ocean's Edge on the islands of St. Kitts and Nevis.

The company raised £3.6m from a share placing and a further £7m from two of its directors in Dec. 07, details here. At the time the company declared part of its strategy was to "Focus on the conservation of working capital in the near term, including, inter alia, reduction of overheads at Humber Valley Resort." This would appear to have been a strategy that hasn't worked thus far.

In August this year an announcement was made that 40 employees at the resort were to be made redundant and that it would no longer run a hotel and tourism operation. It also said that it was ending the practice of helping owners rent out their properties.

You can find the full Humber Valley story here, as it may have disappeared from the Humber Valley Resort homepage by the time you read this.

If you are looking for updates on the Humber Valley story you'll find Gary Kelly's blog and the Crazy about Newfoundland blog to be exceptional resources.

There is an update on this story here.
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