February 12, 2009 - Wyndansea Oceanfront Golf Resort - Marine Drive Properties, Ucluelet Vancouver Island B.C.

Wyndansea Oceanfront Golf Resort Court lifts developer's creditor protection

Wyndansea Oceanfront Golf Resort Court lifts developer's creditor protection

A B.C. Supreme Court justice has lifted an order protecting the developer of the Wyndansea Oceanfront Golf Course from creditors.

On Jan. 15 Marine Drive Properties received protection under the Companies' Creditors Arrangement Act, a federal statute that permits and assists companies in need of refinancing or restructuring.

But on Feb. 10, that order was set aside although MDP can still raise funds and sell property in order to settle debts.

In a statement emailed to the Westerly, the company's CEO, Elke Loof-Koehler, said she plans to "fast track" financial transactions with new equity partners.

Loof-Koehler did not name the new equity partners nor the amounts they were planning to contribute.

"We have made great progress in the recent weeks," she stated. "We are 100 per cent confident that we will get the company back on track in the near future."

Seven months ago, in July 2008, the Westerly reported that foreclosure proceedings had begun against MDP when a B.C. Supreme Court judge gave the company six months to redeem the mortgage by paying just under $24 million to mortgage holders.

Then on Jan. 15 of this year, the court granted the company an order with various reliefs including a stay of proceedings against MDP and its assets and creditors by others.

But that order ended with the Feb. 10 ruling.

The Wyndansea Oceanfront Golf Resort is planned for 370 acres of property on the Ucluelet peninsula.

On the resort's website the resort is named as home to the Jack Nicklaus Golf Club of Canada with an 18-hole golf course and Starwood Capital Group's 1 Hotel Vancouver Island at Wyndansea.

 Original Story - Canada.com

Follow-up Story - February 13, 2009

Credit Crunch, Media Coverage, Or Lack Of Cash?

What’s behind the current financial problems plaguing the developer of the Wyndansea Oceanfront Golf Resort?

The developer blames the credit crunch.

Supporters cite negative media coverage.

But some creditors argue the developer just ran out of money.

The reasons vary and all three explanations were found in recent media statements and court documents obtained by the Westcoaster.ca.

This week, a B.C. Supreme Court justice lifted an order protecting Marine Drive Properties Ltd., Wyndansea Hotel Inc., 0707624 B.C. Ltd., all owned by Ucluelet developer Elke Loof-Koehler, from creditors.

Marine Drive Properties is the company behind the proposed $650-million Wyndansea Oceanfront Golf Resort.

Court records show Koehler’s three companies owed creditors $52,097,498.

According to a recent media statement, Marine Drive Properties Ltd. blames the problems on the current global credit crunch.

“As a result of the difficult global economic environment, and despite saleable real estate inventory, MDP was unable to meet its current liabilities,” stated Marine Drive Properties.

Sarah Evans, vice-president of sales and marketing for S&P Destination Properties, blamed some problems on uncertainty caused by news coverage.

In a Jan. 20 letter to Loof-Koehler, which was submitted to B.C. Supreme Court as part of an affidavit, Evans said an invitation-only sales program this past summer generated strong interest.

“However, the news of the foreclosure proceedings early on in the campaign impaired the success of the program,” she wrote. “While the adjusted sales prices made engaged prospects comfortable with an extended development schedule, news of pending foreclosure proceedings created too much uncertainty for them to move forward with a home site purchase.”

Meantime, the loan syndicate – which squared off with Loof-Koehler in court – takes issue with the developer’s credit-crunch argument, according to a Feb. 10 Reasons for Judgment by Justice Bruce Butler.

“The Syndicate notes that the work on the golf course stopped in 2007,” states the ruling. “A $1.9 million lien by the golf course contractor was filed in November 2007.

“The Signature Circle lots have been marketed since early 2007. While a number were sold, those sales, with one exception, did not complete.

“The marketing consultant, S&P Real Estate, has a $900,000 charge filed against the lands. The Syndicate argues the petitioner ran out of money long ago and it is disingenuous to blame their difficulties on the global credit crunch.”

Creditors and Loof-Koehler were expected to return to court Feb. 12 to consider costs related to Tuesday’s court ruling.

Original Story - Westcoaster.ca