Alberta firm asking court to send Stephenville airport into receivership

A Calgary-based private equity manager has filed a court application to push the numbered company behind the Stephenville airport into receivership.

“An interim receiver is required immediately because the respondent’s chronic lack of capital and ongoing mismanagement threatens the ongoing protection and preservation of the airport assets,” lawyers from BTG Capital Inc. wrote.

Late last year, BTG Capital acquired the rights to collect a court judgment against Carl Dymond — the sole director of airport owner 15132738 Canada Inc. — and now holds a mortgage on the airport property.

BTG Capital said in court documents filed Jan. 14 that it has “a first-ranking security interest in all the respondent’s property.”

The filings indicated the amount owing is nearly $2.5 million, as of Jan. 12.

According to the documents, BTG’s lawyers issued a demand for repayment that day, along with a notice of intention to enforce security under the Bankruptcy and Insolvency Act, and a notice of sale in accordance with the provincial Conveyancing Act.

In its application, lawyers for BTG submit that the airport “has been and continues to be neglected by the respondent in a manner that threatens to cause significant damage to the property.” 

The Alberta firm cites a number of reasons for that, including:

BTG’s application to appoint an interim receiver is scheduled to be heard at Newfoundland and Labrador Supreme Court in St. John’s on Tuesday afternoon.

The company has yet to respond to requests for comment sent late Friday afternoon to its St. John’s-based lawyers.

Dymond declined to discuss he matter, on the advice of his lawyer. In a text message, he indicated he would be open to doing so "once the appearance is settled" and he has filed his response to the application.

Dymond, an Ottawa businessman, announced plans to acquire the moribund airport back in 2021.

At the time, he pledged to create thousands of jobs, bring back scheduled passenger air service, and infuse hundreds of millions in private capital into the operation.

The deal closed two years later. But none of those benefits have materialized.