The businessmen behind a failed aurora tourism venture have reached a settlement with the Government of the N.W.T. over an unpaid loan guarantee.
For years, the N.W.T.’s Business Development and Investment Corporation has been trying to collect on personal guarantees the partners signed.
In 2004, the BDIC loaned Aurora World $1.8 million. As part of the company’s restructuring, the government agreed to forgive $800,000. Aurora World’s partners — which includes Range Lake MLA Daryl Dolynny — promised to repay up to $100,000 out of their own pockets if the business failed again. The business went under three years later.
In court documents filed in January, Aurora World lawyers had argued 11 people — from the top of government to staffers at the BDIC — assured Dolynny and his partners in the business they would never have to make good on their promise to repay money to the BDIC if Aurora World failed. However then-premier Joe Handley denied that.
Today, the BDIC's lawyer said both sides came to a settlement, but neither party is discussing the details of the agreement. No one is saying if the business partners will have to pay any of the money back.
Dolynny said he's happy the case wrapped up so the partners can carry on with their lives.
The lawyer for BDIC said there's still a judgment to come against Aurora World, but called it a dormant case, since the company foreclosed and there are no assets left.