Wilfred Baghaloo, managing director at PricewaterhouseCoopers Tax and Advisory Services Limited in Jamaica, who has been appointed as receiver of Mystic Mountain Limited (MML), indicates that he is entertaining both local and regional buyers in the quest to sell the operation.

Baghaloo’s appointment as receiver follows the rejection of a proposal made to all creditors, both secured and unsecured, at a meeting on February 8, 2022.

In a year-long fight, directors of Mystic Mountain, which operates a north coast attraction, had tried to come to an agreement with creditors under the Insolvency Act.

Sky High Holdings Ltd (the secured creditor) owns 100 per cent of Mystic Mountain Limited’s senior secured fixed rate bonds in the principal amount of $1.1 billion.

In the first phase of the sale underway, parties [bidders] are expected to respond to the advertisement by May 9, 2022, expressing their interest in the opportunity through requesting the expression of interest document and then paying US$1,000 to access more information that will be provided through a virtual data room.

Baghaloo told the Jamaica Observer, “Thereafter, the interested party is expected to do their due diligence and submit a bid by June 28, 2022. All interested parties must follow the process outlined in the advertisement and the expression of interest document.”

Baghaloo told Caribbean Business Report, “We are indeed focusing on regional and international magazine (s) subject to crossing many legalities; there are many legal challenges in placing international advertisements for the sale of business for a company domiciled in Jamaica.

“We have also distributed the opportunity to many other potential interests (local and international) directly.”

A valuation of the company is not available. The receiver said that experienced bidders will be provided with sufficient information through the data room for them to make an informed bid/decision, in relation to the value of the company.

For Mystic Mountain Limited (MML) default on payments followed the onset of the novel coronavirus pandemic in March 2020, under which circumstances the tourism industry and the company’s revenues were affected.

MML failed to make principal and interest payments on those bonds resulting in the full amount becoming due on the January 26, 2021.

Consequently, the debtor served a Notice of Intention to file a proposal, pursuant to section 11 of the Insolvency Act, which was served on the February 3, 2021. In a meeting held on February 8, an offer made to creditors was rejected, hence the receivership and the sale of the company.

Baghaloo took control of the assets of MML under the related debenture agreement. The receiver said he was unable to disclose whether or not bids received to date were from local or overseas origins.

“Unfortunately, I cannot disclose that given that phase one of the process continues until May 9, 2022,” he said, also declining to indicate if creditors were among the bidders.

Mystic Mountain is one of the top attractions in Ocho Rios, Jamaica. Activities include ziplining, bobsledding and bird watching. Located on a mountain, guests have to travel up the mountainside via chair lift.