A Newfoundland and Labrador Supreme Court judge has extended the interim receivership for the Stephenville airport, paving the way for a creditor’s application to launch a court-supervised sale process. A recent report details the site’s rapidly worsening infrastructure, including broken pipes, severe damage in key buildings, and inaccessible areas blocked by snow.
Extended Receivership and Urgent Sale Push
Associate Chief Justice Rosalie McGrath prolonged the 30-day interim order granted last month to March 9. The order applies to 15132738 Canada Inc., the company operating the airport.
BTG Capital, a key creditor, intends to seek full receivership and approval for a sales process soon. William Cahill, BTG’s lawyer, highlighted pressing concerns to the court: “The carrying costs and the potential disruption here are major concerns, with the thawing weather of the spring coming — with broken pipes and water. There’s major costs potentially coming. We’re trying to get this done as quick as we can.”
The interim receiver, Janes and Noseworthy, endorses this approach, stating that “a timely, court-supervised sale process represents the most efficient and transparent means of maximizing value and preserving stakeholder interests.” Delays could worsen physical damage and increase financial risks.
Severe Infrastructure Damage Revealed
A January inspection of the terminal, former Marine Institute building, and equipment maintenance facility uncovered extensive issues. Numerous heating pipes are broken, water pipes have burst, and a basement hot water heater remains undrained. “The full extent of the damage remains unknown,” the report notes. More than two dozen photos document the destruction.
The airport stands non-operational, uninsured for property risks, without utilities, and with major damage to heating and plumbing. Janes and Noseworthy reports: “Restoration of full operations would require significant capital investment, the extent of which is presently unknown and speculative.”
Efforts to restore electricity stalled after Newfoundland Power demanded a government referral due to prolonged disconnection since June. The utility claims $110,000 owed. Provincial officials require a full inspection before reconnection, which has started but already flags risks like insulation breakdown, moisture issues, and grounding failures needing major fixes.
Mounting Debts and Limited Cooperation
The report lists $6.5 million in debts, including $600,000 to the Town of Stephenville and over $820,000 to the Canada Revenue Agency. CRA notes the last payroll remittance in June 2025 and unpaid HST returns since January 2023, potentially raising the total.
Access to financial records remains incomplete, limiting verification of the company’s position. “The lack of access to books and records has limited the interim receiver’s ability to independently verify the company’s financial position and underscores the need for continued court supervision and expanded receivership powers,” the report states.
Airport owner and sole director Carl Dymond, president and CEO of Dymond Group of Companies, has provided minimal cooperation beyond emails from his lawyer. Despite claims of a potential buyer nearing a deal, no contact or progress from any purchaser has occurred.
