Mystic Mountain shuttered
Published:Wednesday | December 6, 2023 | 12:08 AMAvia Collinder/Business Writer
Mystic Mountain (MM) Limited (company in bankruptcy) has shuttered the St Ann operation with workers made redundant and telephone lines de-registered. MM is an adventure park which caters mostly to tourists, including cruise ship visitors.
However, sources say there is hope of a Christmas week reopening and some rehires of workers who have been sent home.
Receiver Wilfred Baghaloo told the Financial Gleaner, “In general all proceeding quite neatly.”
New owner Northjam Holdings Limited could not be reached for comment.
On Friday, August 18, the sale for the property was approved by Justice David Batts. The buyer offered US$13 million for the business and leases.
Baghaloo was appointed receiver after Sky High Holdings Limited, in early 2022 after the secured creditor for MML, exercised a denture to take over the company. Sky High holds $1.1 billion of MML’s senior secured bonds, on which the adventure company defaulted on payments in 2020.
The default happened at a time when tourism and hospitality companies were all under pressure due to fallout from the coronavirus outbreak.
MML failed to make principal and interest payments on the bonds, resulting in the full amount becoming due in January 2021.
Subsequent meetings failed to secure a resolution and the company was later placed in receivership.
Regarding the funds from sale, Baghaloo stated, “All the funds are in escrow, and I have been drawing down subject to the sale agreement. To date there has been 80 per cent drawdown.
“It normally takes two to three months between closure and possession. It is a rather complicated matter.
“The company is still in receivership. A receivership ends when the debenture holder releases and discharges the receivership. This is likely to be in December or early January. In general, all proceeding quite neatly.”
Meanwhile, it was noted that Former Trustee Debbie Ann Gordon is continuing her appeal before Justice David Batts in relation to costs made against her on various matters.
Chevánt Hamilton of the law firm Samuda and Johnson outlined, “The Former Trustee application sought the leave of the Court to appeal the personal costs orders which were made against her.
“This application was made in the claim in which the Honourable Mr Justice Batts had approved the sale of the assets of Mystic Mountain Limited. The application was heard on November 27, 2023.”
Hamilton said, “Although the Honourable Mr Justice Batts refused the application the Former Trustee can now pursue the same application at the Court of Appeal. If the Court of Appeal grants leave, then the Former Trustee can proceed with her Appeal against the personal cost orders.”
Attempts to get a response from the former trustee and her legal representative were not successful.
Lemar Neale, instructed by Nea/Lex appeared for the Former Trustee. John Vassell, KC, and Julianne Mais-Cox instructed by DunnCox appeared for the Receiver, Wilfred Baghaloo. Carlene Larmond, KC, and Giselle Campbell instructed by Patterson Mair Hamilton appeared for Sky-High Holdings, the bond holder.
Chevánt Hamilton, instructed by Samuda & Johnson appeared for the Committee of Inspectors of Mystic Mountain.