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A Newfoundland and Labrador Supreme Court judge has extended the interim receivership over the Stephenville airport, as an application looms to kickstart a potential sale of the property.
Meanwhile, a just-completed report outlines the “deteriorating” status of the infrastructure there.
That includes more than two dozen photos showing broken pipes, evidence of “significant damage” sustained in the three main buildings, and the inability to even look at other areas that are inaccessible due to snow.
“The airport is presently non-operational, uninsured for property risks at the time of appointment, without utilities, and has sustained material damage to its heating and plumbing systems,” interim receiver Janes and Noseworthy wrote in its first report to the court.
“Restoration of full operations would require significant capital investment, the extent of which is presently unknown and speculative.”
Last month, creditor BTG Capital was successful in having a 30-day interim receivership order granted for the numbered company behind the airport.
On Friday, Associate Chief Justice Rosalie McGrath extended that interim order to March 9.
William Cahill, a lawyer for BTG, said the company plans to proceed to a full receivership application and “approval of the sales process to come” before then.
“The carrying costs and the potential disruption here are major concerns, with the thawing weather of the spring coming — with broken pipes and water,” Cahill told the court.
“There’s major costs potentially coming. We’re trying to get this done as quick as we can.”
The interim receiver’s report supported BTG’s intention to seek approval for that next step.
“A timely, court-supervised sale process represents the most efficient and transparent means of maximizing value and preserving stakeholder interests,” Janes and Noseworthy advised.
“Delay in commencing such a process risks further physical deterioration of the property and additional financial exposure.”
Receiver flags failing infrastructure, financial woes
In the report, Janes and Noseworthy highlighted a series of issues facing the airport.
A late January tour of three buildings — the terminal, the former Marine Institute premises, and the equipment maintenance building — led to the discovery of numerous broken pipes in the heating system. There were also broken water pipes and a hot water heater in the basement that had not been drained.
“The full extent of the damage remains unknown,” the report advised.
Attempts to reinstate electricity hit a roadblock, when Newfoundland Power referred the interim receiver to the provincial government “due to the time that had elapsed since service was disconnected.”
Power was cut off last June. According to the court filing, Newfoundland Power is owed $110,000.
Provincial officials said service could not be reinstated without a full inspection.
According to the receiver’s report, that process has begun, but potential issues have already been flagged.
Those include “insulation breakdown, moisture infiltration, grounding failures or other electrical deficiencies that could require significant remediation before power can be safely restored.”
Dymond Group of Companies president and CEO Carl Dymond announced big plans for the Stephenville Airport at a media event held on Sept. 9, 2021. (Troy Turner/CBC)
The Janes and Noseworthy report identified $6.5 million in outstanding debts, including an estimated $600,000 to the Town of Stephenville and more than $820,000 to the Canada Revenue Agency.
The interim receiver cited CRA as saying that the last payroll remittance was filed in June 2025 and that HST returns were outstanding since January 2023. That could drive the amount owing higher.
Janes and Noseworthy said it did not have complete access to the company’s financial records as of Thursday.
“The lack of access to books and records has limited the interim receiver’s ability to independently verify the company’s financial position and underscores the need for continued court supervision and expanded receivership powers,” the report noted.
Janes and Noseworthy told the court that it has not heard from or received co-operation from airport owner Carl Dymond, other than receiving emails from his lawyer.
Dymond is the sole director of 15132738 Canada Inc., the numbered company currently in interim receivership.
“Despite assertions by Dymond of a potential purchaser and imminent closing, the interim receiver has had no contact from any such potential purchaser and, to the best of its knowledge, no actions have been taken by any such potential purchaser to advance the purchase of the property,” the report said.
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