Judge approves sale agreement for Mystic Mountain

Justice David Batts has approved the sale of Mystic Mountain Limited, MML, operator of an adventure park in Ocho Rios that went bankrupt.

It paves the way for the secured creditor, Sky High Holdings Limited, and potentially unsecured creditors, to recoup debt owed by MML, whose current owner is Rainforest Adventure Holdings Limited.

Justice David Batts announced his decision on Friday but said his written judgement would be issued at a later date.

“The sale of the business and assets of Mystic Mountain Limited in receivership and bankruptcy, hereafter referred to as Mystic Mountain, including the current leases, upon the terms and conditions of sale set forth in the agreement for sale dated the 19th day of January 2023 to the purchaser named therein and duly executed by the parties thereto, is hereby approved.”

Mystic Mountain was placed in receivership in February 2022 after failing to meet its bond payments. Sky High holds $1.1 billion of MML’s senior secured bonds on which the company defaulted during the pandemic.

Receiver Wilfred Baghaloo told the Financial Gleaner after the hearing that the name of the purchaser for the attraction and the price offered would be released only after the transaction is concluded in about two months.

“There is a confidentiality agreement in place,” he said.

In his ruling at the Supreme Court, Justice Batts also said that all legal costs related to the case up to August 2 are to be borne by the estate of Mystic Mountain.

These costs relate to the receiver, the debenture holder and interested parties, he said, while cautioning that there should be no double recovery.

However, for three trials occurring from August 3 onwards, he ruled that a portion of those costs are “to be paid by the trustee personally” – she had challenged the sale – and some by the Mystic Mountain estate. It’s at least the second time that Batts has held MML trustee Debbie-Ann Gordon personally responsible for legal costs during the different hearings related to the bankruptcy.

One individual in attendance at the court on Friday said the judge may have to provide further guidance in relation to costs borne by the estate as the cost of paying the lawyers involved in the case could be “quite significant”.

avia.collinder@gleanerjm.com