Posted on: October 28, 2024, 04:27h.
Last updated on: October 28, 2024, 04:27h.
The entity controlling the Camrose Casino in Alberta, Canada, has been put into receivership by the province’s Court of King’s Bench.
A judgment was issued to Mayfield Investments Ltd. Thursday for unpaid debts to province-owned bank ATB Financial and for violating forbearance agreements related to those debts.
The order empowers receiver Ernst & Young to take control of all of the Debtor’s current and future assets, including all proceeds.
Ernst & Young can now change locks and conduct business on Mayfield’s behalf per the order.
Relocation Approval Given
The ruling jeopardizes Mayfield’s plans to move the Camrose Casino to Edmonton, approved by the Alberta Gaming Liquor Cannabis (AGLC) two weeks prior.
Howard Pechet, Mayfield president, expressed surprise at the development, stating, “We’ve had a good relationship with the Treasury branch for 50 years now.”
Aside from the debt to ATB, Mayfield also owes approximately C$1.8 million to the Camrose Regional Exhibition (CRE).
The CRE loaned Mayfield $2.5 million in 2006 for construction of the Camrose Casino. However, repayments ceased during the COVID-19 pandemic.
The prior application to relocate the casino to Edmonton was rejected by the regulator in 2022 due to public opposition. The latest application faced similar scrutiny but was eventually approved by the AGLC.
Continued Resistance
The latest proposal aims to build an 88,000 square-foot casino with various gaming options.
Pechet refrained from speculating on the impact of the receivership order on the relocation plans.