The Radisson Hecla Resort was placed into receivership last month by the Business Development Bank of Canada (BDC), its largest creditor at $8.5 million. The province, through its Manitoba Industrial Opportunities Program, is owed $5.5 million, too.
Joe Paletta, president of the Paletta Group, which ran the hotel for the last three years, said while it did a good wedding and special events business from the spring through to the fall, it wasn't able to attract a sufficient number of customers to its cross-country skiing and snowmobile trails and wildlife viewing in the winter to make the 90-room property economically viable.
Paletta isn't standing pat, however. He filed a statement of claim last month against the BDC and the province. He said his company has sunk nearly $20 million into the Hecla property since it signed a lease more than five years ago.
Winnipeg-based Lazer Grant has been appointed as the receiver for the resort. It is not clear whether it will reopen next spring.
from Western Investor, January 2011
