Sicamous Houseboat Company in Receivership.
After 50 years in business Waterway Houseboats in Sicamous expects to be in receivership.
The Sicamous houseboat company issues the following statement:
As many of you will be aware, Waterway has been a part of the fabric this community for over 50 years. As you may also be aware, Waterway suffered a devastating Flood in 2012, and since that time, the Waterway team has done an exceptional job in a very difficult situation, keeping the company operating and even growing. We celebrated our 50th anniversary last year with a sense of optimism and pride in what we had accomplished. The devastating flood that occurred in 2012 put us on our heels but with the help of very able legal counsel we pursued an action in damages against the Province, the District of Sicamous and the neigbouring landowners whose bridge was instrumental in damaging our property. After a 61 day trial, the BC Supreme Court issued its judgment on April 16, 2019. While we won every factual aspect of the of the case related to the flood, the Court did not side with us on damages. We had been anticipating a substantial monetary award that would make us whole. Our able counsel was also optimistic that this would be the case. Sadly the actual award of damages is several million dollars less than we had expected.
In our view, there are clear errors in judgment regarding the amount of the award. While we feel that we have a very good case to rectify this upon appeal, that process could take approximately 2 years and it could cost hundreds of thousands of dollars. In addition, the Province is counter appealing which we believe is simply a tactical move. Our Bank, CIBC, had been supportive of this process and we believed they would carry us through to the end of the process. However, given the relatively small amount of the judgment, CIBC appears to have given up on the process.
Given this, we wish to advise you that an Application for the Appointment of a Receiver is being made against Waterway by CIBC which is scheduled to be heard in the Vancouver Court on Tuesday June 11, 2019.
Our expectation is that the Court will grant the Application and as a result, Waterway will be in Receivership on June 11, 2019. Once Waterway is in Receivership, Company Management will no longer be in control of Waterway or Waterway's assets.
While it will be up to the Receiver whether they continue to operate the business of the Waterway or shut down operations, our understanding, based on recent discussions, is that the Bank's receiver will likely not operate the business of Waterway. Up until a few days ago, we were very optimistic that in the event that CIBC decided to appoint a receiver, the receiver would operate the business at least through to the end of the 2019 sailing season to preserve Waterway's value.
The decision of CIBC to proceed with the Receivership Application is extremely disappointing to us. We have been working diligently and cooperatively with the CIBC over the past several months implementing our financial restructuring strategy. We are of the view that our strategy would have been successful if we were afforded the required time and support for full implementation. Unfortunately, the CIBC does not appear to agree with us.
Our obvious preference is that a Receiver not be appointed. Regrettably, we are not in control of that decision. We no longer have the working capital to operate the business so without the Bank's support to fund the operations of Waterway, we cannot realistically oppose the receivership application. Notwithstanding this development, Waterway will work cooperatively with the Receiver to facilitate a smooth transition to the extent practicable. We will also explore the alternatives with respect to our appeal of the judgment. There may still be a substantially recovery there and we're advised that if the Bank won't fund that appeal, there may be methods for us to take that over.
We know that this unfortunate series of events will be devastating for our employees, our customers and our suppliers. It is devastating for us as well, as we have lost a life's work. We are hopeful that the assets of Waterway will realize a substantial value so that at least some of the loses can be recouped.
We hope the public will understand this very unfortunate situation.