Total money owed by the Oak Bay Beach Hotel exceeds the estimated value of all its assets, indicating that some creditors will be out of luck once the matter is eventually resolved.
The hotel’s list of creditors runs from a mere $2 to a bakery to $66 million to a construction lending syndicate.
Total debts to all creditors are tallied at $127,799,558. The estimated value of assets total is $117,397,602.
Ernst and Young, receiver for the luxury waterfront hotel at 1175 Beach Dr. in Oak Bay, published the list of creditors this morning.
The hotel that Kevin and Shawna Walker built is now out of their hands, just two years after opening. Ernst and Young is managing the hotel and spa after the construction creditors went to court Dec. 3 asking that a receiver be appointed.
Bison Properties Ltd., the legal entity owning the hotel and unsold hotel units and condominiums, is in receivership, as is Walker Hospitality Ltd., the hotel’s management company, and Kevin Walker.
Ernst and Young is using consultants to help figure out how to improve hotel operations and to set a market value for the property, which it anticipates selling.
A $66-million secured construction loan, held by five companies, is the largest single debt.
That’s followed by Computershare Trust Company of Canada, trustee for hotel bonds, at $46 million.
Oak Bay municipality is next as a priority creditor owed $798,362.
Unsecured creditors are owed $15,001,196, the receiver states.
Many of these 243 creditors are locally owned businesses.
Unsecured creditors include firms providing services, such as taxi cabs, limousines, and travel. Food and beverage suppliers, florists, and utilities are among those listed as well.
The Minister of Finance and Canada Revenue Agency are included in this group of creditors, with amounts described as “unknown.”
Shawna and Kevin Walker, Walker Hospitality, and WH Management Ltd. are on the list of creditors for a total of $304,000.
As for the book value of assets, that is derived from debtors’ books and records. An assessment of their fair market value has not been carried out yet, the receiver said.
The largest asset is the build at $117,515,714, followed by furniture and fixtures at $3,236,371. Accounts receivable come to $1,482,681. The land is worth $691,070, inventory is $294,605, computer equipment is pegged at $141,985, and other assets are believed to be worth $35,176.
