Gregg Dennis of Business Recovery Services Limited has been appointed as the new trustee for adventure park operator Mystic Mountain Limited in bankruptcy.
It follows the rescinding of an injunction previously issued by Justice Stephane Jackson-Haisley three weeks prior that had barred creditors of Mystic Mountain from removing the previous trustee, Debbie-Ann Gordon, who has since resigned from the position after a year of thorny relationships and disputes with MML creditors.
Jackson-Haisley withdrew her previous order on October 6, with agreement from Gordon. The Supreme Court judge at the same time ordered a creditor’s meeting for October 27 to select a new trustee. Her replacement was selected at that meeting, a virtual event, held last Friday.
In the meantime, Gordon, who resigned on October 13, is pursuing hearings before Justice David Batts seeking leave to appeal against five awards of personal costs against her regarding matters raised before the court in relation to the MML relating to the bankruptcy.
Dennis declined to comment on his new appointment. It’s expected that he will do a review of the proof of claim of creditors of Mystic Mountain, of which there are about 140.
MML receiver Wilfred Baghaloo is in the process of finalising the sale of Mystic Mountain’s assets and leases to a company called Northjam for US$13.4 million. As secured creditor, the US$7-million debt owed to Sky-High Holdings is expected to be paid in full. Whatever is left after expenses relating to the receivership will be shared among unsecured creditors, the biggest of them being Sygnus Credit Investments Limited, which has a claim of US$1 million, about $156 million, against MML.
Lawyers representing creditors said that at the virtual meeting held on October 27, no objection was raised against Gordon’s resignation. Twenty-three of the 140 creditors participated in the virtual meeting.