New owner of Mystic Mountain to take control in September
Published:Friday | August 25, 2023 | 12:08 AMAvia Collinder - Business Writer
The company approved as the purchaser of Mystic Mountain Limited, Northjam Island Tours Limited, is expected to pay US$13 million for the bankrupt business, the Financial Gleaner has learnt.
The new owner is now expected to take over the business next month, in the wake of the approval of the sale by the court last Friday.
The offer price, which appeared in a creditor’s report dated March, includes the property, business and leases held by the bankrupt adventure company. Another well-placed source has confirmed it.
Northjam Island Tours was incorporated in June 2022, and two months later Mystic Mountain receiver Wilfred Baghaloo advised that he had received a creditable offer for the adventure park.
The owner of Northjam Island Tours is listed only as Northjam Holdings Limited, but the latter company is registered offshore. It’s held jointly, but the beneficial owners are unknown.
Companies Office of Jamaica records name the directors of Northjam Island Tours as Jason Lopez, Raymon Brahim, Laurence Smith-Taylor and Steven Cummings, all of addresses in Jamaica. The company is yet to submit annual returns.
Efforts to reach the directors were unsuccessful, as the sole phone number listed on Companies Office documentation seemed to be out of service.
Mystic Mountain has operated in the resort town of Ocho Rios, St Ann, since 2008, but went bankrupt during the pandemic after defaulting on a $1.1-billion bond, which translates to US$7.1 million at spot exchange rates. The adventure company was later placed in receivership by secured creditor Sky High Holdings, a company controlled by Adam Stewart and Ian Haynes.
The court has recognised at least 20 other unsecured creditors, including Mystic Mountain’s co-founder Michael Drakulich, among the 150-200 persons and businesses that have come forward. Sygnus Credit is the second-largest creditor, and the biggest unsecured creditor, with debt of US$1 million ($155 million).
Baghaloo again declined to speak to the details of the deal and the company buying the property, but said on Wednesday that he expected the new owner to take over the operations of Mystic Mountain in September. The closing of the sale is expected by October, he added.
The receiver has previously said that due to a confidentiality agreement, he would only go on record with details of the transaction after the deal is concluded.