Chilliwack golf resort sale delayed

Two companies now bidding for land, tax assets of The Falls Golf Resort

A so-called “vulture fund” has swooped down on the The Falls Golf Resort in Chilliwack and kiboshed the bankruptcy plan approved last month by a BC Supreme Court Justice.

Streetwise Capital Partners has obtained enough creditors’ votes to defeat the proposal by Pinnacle Land Developments Inc. to buy the resort – over the objections of court-appointed monitor Pricewaterhouse Coopers.

Justice Robert Sewell said in his Wednesday reasons for rejecting the PWC application to dismiss the Streetwise vote, that he is urging the two bidders to come to an agreement.

“I am therefore prepared to hear an application to extend the stay (of court proceedings) beyond December 15, if the parties see any utility in so doing.”

In September, Sewell had approved Pinnacle’s $15-million bid to buy the hillside resort, giving creditors until Nov. 30 to accept or reject the offer.

But Streetwise, a self-described “vulture fund” that Sewell said “specializes in realizing value from financially distressed enterprises” obtained enough creditors’ votes to defeat the Pinnacle plan.

“The principal difference between the Pinnacle and Streetwise proposals was that the Pinnacle proposal called for (resort operator Blackburn Developments Inc.) to retain its real estate holdings and provided sufficient capital to satisfy senior secured holdings,” Sewell said, “while the Streetwise proposal called for a disposition of those real estate assets, except for the golf course.”

Sewell did not find that Streetwise had acted in “bad faith” as alleged by the PWC monitor, nor did Blackburn president Rick Wellsby intend to deceive creditors with misleading information contained in emails urging them to support the Streetwise offer.

“I accept his evidence that he genuinely believed that the Streetwise proposal offered the best recovery to creditors and that he continued to hold that belief after I approved the Pinnacle (restructuring plan),” Sewell  said.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Provincial government responds to Ryder Lake bad internet complaints

Anne Kang, Minister of Citizens’ Services, responded to a pair of letters sent to Victoria

Chilliwack Search and Rescue kept busy on B.C. Day long weekend

Six callouts in 10 hours Friday continued a trend of more outdoor enthusiasts needing help in 2020

Fraser Valley Bandits release top forward Cameron Forte

A team leader through four games of the CEBL Summer Series, Forte has been cut loose

The Happy Hiker, Art Lengkeek, recognized with bench and plaque on Mount Cheam trail

The 88 year old is a familiar sight on trails throughout the Fraser Valley and beyond

QUIZ: How much do you know about British Columbia?

On this B.C. Day long weekend, put your knowledge of our province to the test

VIDEO: Otter pups learn to swim at B.C. wildlife rescue facility

Watch Critter Care’s Nathan Wagstaffe help seven young otters go for their first dip

Wildfire breaks out near Harrison Hot Springs

1.5 hectare fire is reportedly human caused

Police lay out details of mental health response in Abbotsford over long weekend

APD officers assist mental health team for three hours yesterday, man sent to hospital with injury

Michael Buble among 13 British Columbians to receive Order of B.C.

Ceremony will be delayed to 2021 due to COVID-19

U.S. border communities feel loss of Canadian tourists, shoppers and friends

Restrictions on non-essential travel across the Canada-U.S. border have been in place since March 2`

Rollout of COVID-19 Alert app faces criticism over accessibility

App requires users to have Apple or Android phones made in the last five years, and a relatively new operating system

Fraser Valley Bandits clinch playoff spot with win

Bandits down Niagara River Lions 70-57 on Sunday, improve to 3-2

Most Read