Question Period Note: Ben Eoin Golf Club Limited

ACOA has filed a statement of claim seeking a judgment against Ben Eoin Golf Club Limited, the recipient of financial assistance, and 3324714 Nova Scotia Limited, the purchaser of the golf course assets, for the recovery of a debt due to ACOA. The companies have filed a statement of defence.

• ACOA works hard to ensure that recipients of funding meet the obligations of the investment and comply with the terms and conditions of their contribution agreements.
• In June, 2022, ACOA filed a statement of claim for the recovery of a debt from Ben Eoin Golf Club Limited (Ben Eoin) and assumed by 3324714 Nova Scotia Limited (332).
• This is a matter currently before the courts and it would be inappropriate to comment on it.
• The companies have filed a statement of defence.

In 2005, a group of community leaders set out to establish an 18-hole golf course in the Ben Eoin area of Cape Breton, Nova Scotia. In 2006, an Equity Investment Agreement for $3.0 million in preferred shares was concluded between Ben Eoin Golf Club Limited (Ben Eoin) and the now dissolved Enterprise Cape Breton Corporation (ECBC), to assist in the establishment of the golf course. In 2008, the agreement was amended and the amount was increased to $3.5 million. Upon the dissolution of ECBC in 2014, ACOA acquired the assets and assumed the obligations of ECBC, which included its preferred shares in Ben Eoin.

In 2018, ACOA learned of a proposed sale and transfer of all assets and related debts and liabilities of Ben Eoin. The transfer of some of these assets prior to full redemption of the shares was conditional on prior consent from ACOA. While many discussions and negotiations took place regarding the proposed terms for the repayment of the equity investment in the context of the proposed transfer, no consensus was reached.

In June 2020, ACOA was informed that the sale of assets to 3324714 Nova Scotia Limited (332) had been completed without consent from ACOA.

Therefore, ACOA sought the full redemption and payment of its remaining preferred shares and arrears, for a total amount of $3,494,972.66. No payment has been received from either company to date.

ACOA is taking appropriate collection measures, which include the commencement of a legal action by the Department of Justice, on behalf of ACOA, for the recovery of the debt. In response, the companies have filed a statement of defence.

ACOA works to ensure that recipients who receive public funds comply with the terms and conditions of their funding agreement and takes necessary steps to protect taxpayers investments. The Agency remains open to settlement discussions with the companies.

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