The perennial Canadian Tulip Festival was almost trampled to death beneath its debts. But now it is scheduled to re-emerge next spring — in the hands of a new owner.

Ottawa businessman David Luxton has offered to take over the festival and settle with the festival's creditors for $100,000. 

The festival owes its creditors more than $700,000, but they have accepted an offer that pays them back only $100,000.The festival owes its creditors more than $700,000, but they have accepted an offer that pays them back only $100,000.
(Canadian Tulip Festival)

The offer is only a fraction of the more than $700,000 that the non-profit organization owes, but the creditors accepted the offer Friday.

Once the funds have changed hands, Luxton will appoint a new board of directors. He said he hopes they will be able to try some new ideas when the festival comes back in the spring.

"I've been a fan of the festival for a long time and a fan of Ottawa," said Luxton. "And I think it brings a lot of value to the festival and it could bring a lot more value with a sustainable business model going forward."

Luxton is the CEO and director of Allen Vanguard Corp., a publicly trade company that produces military and security technology.

The 2007 Canadian Tulip Festival is scheduled to take place May 4 to 21.

The festival, which offers concerts, exhibits, a parade and other events, blankets the National Capital Region of Ottawa-Gatineau with millions of colourful tulips each spring.