Bear Mountain owners owe $62 million to a creditor that was due on May 1, and that creditor is now asking for the owners to enter receivership.
Sanovest is a partner in the project and secured creditor with around $62 million plus interest outstanding on the loan, it says in a court filing.
“The loan came due on May 1, 2024 and, despite demand, has not been repaid,” Sanovest says in its court filing. “In fact, the Developments Partnership has failed to make any payments to Sanovest since July 2023.”
Sanovest is asking a receiver to step in to “preserve the Respondents’ assets and ensure fair treatment among creditors.”
Bear Mountain is independent from the Westin Bear Mountain Resort & Spa, which is unaffected and the Westin Hotel, Amatista Spa and the food, beverage and conference facilities all remain open and unaffected by this filing.
Sanovest has filed this request to enter receivership against 15 owners of Bear Mountain, which encompasses its development and resort partnerships. The resort partnership includes the Ecoasis properties and golf course.
Bear Mountain has not yet filed a counterclaim to the application filed in the Supreme Court of British Columbia in bankruptcy and insolvency. The claim was filed on May 22, and Bear Mountain has 21 days to file a response.
In addition to the unpaid loan, Sanovest noted that the lease for the golf course is “critical to operations” and the lease expires on June 30, 2024, and there is “no viable strategy to extend that lease or replace the services it provides.”
Sanovest also notes that the development project is facing litigation and “does not have access to funds to satisfy judgments if they were made in those proceedings.”
One of the ongoing lawsuits includes the City of Langford, which filed a notice of civil claim in March saying Ecoasis had an outstanding balance of $3,069,507.19 towards the extension of the Bear Mountain Parkway that became due on Dec. 31, 2023.
Ecoasis filed a two-page response on April 12 denying every allegation that Langford made against it.
“The Defendent denies it is liable to the Plaintiff, or that any amounts are due and payable to the Plaintiff, as alleged in the Notice of Civil Claim, or at all,” the response says.
RELATED: Langford sues Bear Mountain developer for overdue funds
Laura Brougham
