Friday, August 10, 2012

Aviawest Resorts Accused Of Illegal Sales

Sold $12.7 Million In Notes To Investors

An article in the Vancouver Sun says that Nanaimo-based Aviawest Resorts Inc. sold promissory notes to 214 investors without being registered to sell securities and without issuing a prospectus according to the BC Securities Exchange.

At it's peak the time share company employed more than 400 people and had some 8,000 families as vacation owners or fractional owners in the company's property portfolio. During the company's growth period it incurred a total of $90.2 million in debt with $68.5 million being secured and $21.7 million unsecured.

Among the unsecured creditors are the 214 investors who bought the promissory notes who had been promised a return rate of 12%. It is not likely these creditors will make any material recovery. The full article can be read using this Nanaimo Info LINK.


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