City an unsecured creditor, owed $307K by Lodge owner

By Medicine Hat News on November 8, 2024.

The City of Medicine Hat is owed $307,000 by the owners of the Medicine Hat Lodge, which entered creditors protection this fall and whose assets are being considered for sale by a court-appointed receiver.

An initial creditors list posted by receiver Ernst & Young states that Mayfield Investments owes at least $41.7 million to secured creditors, which will receive priority in repayment, and another $4.3 million to unsecured creditors.

The city is listed among unsecured creditors, likely for either utility bill or property tax amounts, along with about 20 other individuals and companies in the Medicine Hat area.

Those accounts range from a few hundred dollars to several thousand dollars, but up to $10,000 and $20,000 in several cases, according to the list.

Mayfield’s largest debt is to Alberta Treasury Branch, which applied to put the company in receivership over an unpaid $38.8-million loan. Eight other parties are listed as secured creditors, though amounts are not yet known.

The total amount also includes about $5 million in secured and unsecured monies to Service Master, a restoration firm cited in other court documents as being in a legal dispute with Mayfield over work on flood damage at the Camrose Casino and Hotel Resort.

That facility, as well as the Lodge, are now being operated by the receiver, which said this week it is examining operations and financial information and arranging funds to continue meeting payroll and move forward with any critical maintenance matters.

The City of Camrose is also owed $12,400, while the Wyndham Hotel Group, which the Lodge is now branded, is owed about $65,000.

Secured creditors without detailed accounting include the Camrose Regional Exhibition and Agricultural Society, a partial owner of the Camrose Casino with Mayfield.

Also named are the Agricultural Financial Services Corp., ConnectFirst Credit Union and Canada Revenue Agency.