Medicine Hat Lodge in Receivership - Document Leak
Copper Coulee Casino VLTs
Medicine Hat, AB — The House Always Loses - The Medicine Hat Lodge Hotel, a prominent local landmark under the ownership of Mayfield Investments Ltd., has entered receivership, raising concerns about the financial impact on the community and creditors. Court documents reveal that Mayfield owes significant debts, with the largest creditor, ATB Financial, stating an outstanding balance exceeding $38.8 million. The total liabilities for the company amount to over $46 million, which far surpasses the reported assets of $22.5 million.
The ATB Financial lawsuit underscores the serious debt burden carried by Mayfield Investments, and with Ernst & Young Inc. appointed as the receiver, all current and future assets are now under their management.
Owed Money: The Top Unsecured Creditors List
The following details represent the amounts owed to unsecured creditors, a snapshot of financial obligations that highlight significant debts across various sectors. Here's a look at the top creditors and amounts:
City of Medicine Hat: $307,256.66
ServiceMASTER: $2,268,612.71
Government of Alberta: $153,846.88
Ecolab Co.: $159,525.81
Deloitte LLP: $72,033.93
Wyndham Hotel Group Canada ULC: $64,277.23
Telus Communications: $37,598.64
Receiver General: $137,296.70
Cushman & Wakefield: $19,000.00
Epcor: $83,494.33
These amounts showcase a mix of municipal, corporate, and operational debts owed to various entities. Here's the breakdown:
Municipal Entities
The City of Medicine Hat is the largest single municipal creditor, owed over $307,000, reflecting obligations to local government services and operations.
Service Providers
ServiceMASTER, a provider of professional cleaning and restoration services, stands out with the largest individual amount of $2,268,612.71.
Ecolab Co., known for its hygiene and water treatment solutions, is owed $159,525.81.
Telus Communications is owed $37,598.64 for telecommunications services.
Government and Taxes
The Receiver General is listed with $137,296.70, likely representing unpaid federal taxes.
Government of Alberta is owed $153,846.88, which may involve provincial taxes or fees.
Utilities and Infrastructure
Epcor, a utility services provider, is owed $83,494.33.
Financial and Consulting
Deloitte LLP, a global professional services provider, is owed $72,033.93 for financial consulting.
Cushman & Wakefield, specializing in real estate services, is owed $19,000.
Hospitality and Management
Wyndham Hotel Group Canada ULC is owed $64,277.23, reflecting hospitality-related debts.
This list provides a glimpse into the scope of financial responsibilities, emphasizing the significant obligations to service providers, governmental bodies, and operational entities.
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A Longstanding Problem Unaddressed
Court filings have raised questions about Mayfield’s management of finances and the apparent lack of safeguards that could have prevented the situation from escalating. The company recently attempted to generate revenue by selling the gaming license of Camrose Casino for $5.5 million, funds intended to help pay off its mounting debts. However, this sale is now jeopardized due to legal restrictions that complicate asset transfers under receivership.
Mayfield’s assets, primarily consisting of real estate holdings, inventory, and investments, are valued at approximately $22.5 million, a figure significantly short of covering the company’s total debt. Despite these assets, the situation appears untenable, and the court-appointed receiver will now work to monetize Mayfield’s properties through a sale and investment solicitation process.
Impact on the Community and Accountability Concerns
With such large debts and public interests at stake, local residents are left wondering how these financial issues were allowed to escalate unchecked. The fact that Mayfield's debt to the City of Medicine Hat now risks impacting public finances has raised serious questions about regulatory oversight and corporate accountability.
Medicine Hat residents are already voicing concerns about the potential consequences for the city if the funds owed are not recovered. As the receiver moves forward, the community will likely scrutinize each step taken to resolve Mayfield’s debts.
Don’t just simply beleive me, Tall Bike Tommy, because “he’s not a real journalist” … read the documents yourself here:
