Purchase offer made for mothballed Hecla Resort
Winnipeg company Lakeview Hotels has made an offer to purchase the shuttered resort on Hecla Island, which has been going through bankruptcy proceedings for a year and a half.
The court overseeing the bankruptcy was given a sealed offer for the property on Friday morning and Justice Robert Dewar has said he will judge on the offer on Monday.
The hotel complex was closed in 2010 after Winnipeg Paletta family has remodeled the facility and operated it for several years.
The Business Development Bank of Canada, the first creditor in line in the bankruptcy proceedings, is owed approximately $11 million.
The Province of Manitoba was also a major lender to the resort. Its share of the debt is around $6.6 million.
The Lakeview offer is conditional on the outcome of negotiations between Lakeview and the province on some concessions the company is seeking.
A Lakeview representative declined to comment on what those conditions are.
It costs approximately $50,000 a month in the winter to keep the mothballed Hecla property heated and protected from the elements.
Earlier this year, a Winnipeg businessman had said he was thinking of transforming the former resort, located 180 kilometres north of Winnipeg, into a 100-bed private addictions treatment centre.
But that plan didn't work out.
The resort and an 18-hole golf course were originally built by the province on Hecla Island in Lake Winnipeg more than 30 years ago. A private company took over the resort in 2005 before it was then sold to the Paletta family.
One of Hecla's long-standing problems has been its location. While picturesque, it is a two-hour drive north of Winnipeg and it has had trouble attracting winter business.