ACOA launches $3.5M lawsuit over Ben Eoin golf course
ACOA says sale of course triggered default on investment agreement
The Atlantic Canada Opportunities Agency has filed a multimillion-dollar lawsuit against the owners of a Cape Breton golf course.
Throughout the years, ACOA loaned the Ben Eoin Golf Club Ltd. approximately $3.5 million to help expand The Lakes into an 18-hole course.
The course is located in the Cape Breton Regional Municipality and overlooks the Bras d'Or Lake in Ben Eoin.
According to a statement of claim, ACOA wants its $3.5 million back because the course was sold without their permission.
ACOA claims it warned Ben Eoin Golf Club Ltd. that selling off assets would trigger a default on their investment agreement.
No defence filed
A representative of The Lakes told CBC News in 2019 that a sale of the course was imminent because they were struggling with their operating costs and paying the mortgage and loan debt from ACOA.
According to the lawsuit, Ben Eoin Golf Club sold its assets to a numbered company whose directors are listed on the Nova Scotia Registry of Joint Stocks as Rodney Colbourne, Mike Kenny, Siva Thanamayooran, Troy Wilson and Steve MacDougall.
There has been no defence filed on behalf of Ben Eoin Golf Club Ltd. or the numbered company.
CBC News was unsuccessful Wednesday in reaching their representatives.
A spokesperson for ACOA said the agency is unable to comment as the matter is before the courts.
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