The Falls Golf Resort filed for bankruptcy protection in February after falling $75 million in debt.

Top Stories of 2011: Falls Golf Resort finds itself in the rough

The Falls Golf Resort located in Chilliwack’s eastern hillsides filed for bankruptcy protection in February.

The Falls Golf Resort located in Chilliwack’s eastern hillsides filed for bankruptcy protection in February.

But the court proceedings were extended into January this year after a proposed sale of the resort to Pinnacle International Lands Inc. was defeated by a “vulture fund” called Streetwise Capital Partners Inc.

In a Dec. 15 ruling, B.C. Supreme Court Justice Robert Sewell extended a stay of proceedings to Jan. 31 and suspended the authorization of a PricewaterhouseCooper monitor to pursue sale of the property “without further order of this court.”

The justice also directed the PWC monitor not to incur further costs “in relation to any restructuring transaction” prior to Jan. 5 without the consent of Streetwise and the Landus Development Group, the largest single creditor at The Falls.

The PWC monitor had argued against allowing Streetwise to vote using ballots it had obtained from creditors to defeat the Pinnacle bid, but the justice ruled in favor of Streetwise earlier in December.

In that ruling, Sewell found that Streetwise had not acted in “bad faith” as alleged by the PWC monitor, nor had Blackburn president Rick Wellsby intended to deceive creditors with misleading information contained in emails that urged 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.

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.

According to a monitor’s report, the “Landus Group” (consisting of Landus Development Group Inc. and Home Equity Development Inc.) is the single largest creditor with total claims exceeding $23 million.

Blackburn’s total debt had spiralled up to $64 million when it filed for bankruptcy protection, according to a monitor’s report, including $125,725 in taxes owed to the City of Chilliwack.

The PWC monitor, who has effectively controlled the resort’s operations since February, was tasked with ensuring the

company didn’t fall further into debt while a process for the sale was set up.

The 162-acre golf course opened in 1996 and included a pro-shop, a restaurant and banquet facilities. The 71 acres of surrounding development lands have been approved for a mix of commercial and residential uses.

In October, the City of Chilliwack reduced the number of homes in its development plan for the eastern hillsides to 1,700 from the 5,200 envisioned in 1994.

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

Just Posted

Chronic Chilliwack animal hoarder banned from owning animals for life without SPCA approval

Michael Clendenning had 51 cats, rabbits and dogs seized due to serious physical and mental distress

Abbotsford homeless advocate killed by RCMP in Lytton

Barry Shantz spearheaded getting harm-reduction services in city, changing bylaws around homeless

Chilliwack pet food company shines light on the underdogs with contest

Petcurean’s Uplift the Underdog campaign aims to get animals who are usually overlooked, adopted

Chronic animal hoarder to be sentenced in Chilliwack court Friday

Michael Clendenning had 51 cats, rabbits and dogs seized due to serious physical and mental distress

Rude awakening: 1.6-magnitude earthquake rouses residents from their sleep

The quake was detected 3 km east-northeast of Agassiz

VIDEO: Mass coronavirus quarantines seen in China won’t happen in Canada, authorities say

‘If a case comes here, and it is probably … it will still be business as normal’

Canada slips in global corruption ranking in aftermath of SNC-Lavalin scandal

The country obtained a score of 77, which places it at the top in the Americas

Wuhan bans cars, Hong Kong closes schools as coronavirus spreads

Hong Kong leader Carrie Lam said her government will raise its response level to emergency, highest one

B.C.’s oldest practising lawyer celebrates 100th birthday, shares advice

Firefighters bring Constance Isherwood a cake with 100 birthday candles

Vernon woman suing McDonald’s for spilled coffee

Woman seeking nearly $10K, says employee failed to put lid on properly

5 things you need to know to start using ridesharing in Metro Vancouver

From how to get started to where drivers can take you, heres all you need to know

Diners’ health tax not catching on in B.C., restaurant group says

Small businesses look for options to cover employer health tax

B.C. comic wins judgment after club owner slaps cellphone out of his hands

Incident happened last summer when Garrett Clark was performing in Abbotsford

UPDATED: Mayors call for ‘calmness’ as highway rockslide cuts Tofino, Ucluelet off from supplies

Ministry of transportation expects to open road for “essential travel only” from noon-8 p.m. Friday.

Most Read