NFND Newfound

    RNS Number : 7106J
  Newfound N.V.
  08 December 2008
   


    8 December 2008

    Newfound N.V.
    ("Newfound", the "Company" or the "Group")

    Humber Valley Resort Corporation - update

    Newfound N.V. (AIM: NFND) announces that its subsidiary, Humber Valley Resort Corporation ("HVRC"), has filed for bankruptcy following
the expiry of proceedings under the Canadian Companies Creditors Arrangement Act ("CCAA") initiated in September 2008. 

    This action does not impact either the financial situation of Newfound NV or the projects at St. Kitts and Nevis, which remain
unaffected. 

    Stephen Bentley, Group Finance Director of Newfound, said:
    "It was not our original intention that HVRC should make an application for bankruptcy. Indeed we had formulated a draft preliminary
plan of arrangement that, in our view, gave the interested parties the best result given the unhappy circumstances that Humber Valley Resort
Corporation found itself in. 

    However, our plans required and depended on support from the Government of Newfoundland. Their support was needed specifically with
regard to flights to Newfoundland from the UK; support for the municipality that would administer basic services to the resort; and finally,
a grant of freehold by the government over the portions of long leasehold land already paid for by HVRC. Whilst initial discussions appeared
to be fruitful, in recent weeks it has become clear through media reports and correspondence with the company, that the Government of
Newfoundland would prefer that the resort goes into bankruptcy before they make a decision on their future involvement with HVRC.

    In these circumstances, and with Newfound continuing to finance the CCAA process each month, the Board feels it is not appropriate for
Newfound to carry on spending significant sums of money where there appears to be little or no prospect of bringing the process to a firm
resolution. We therefore have no alternative but to allow the CCAA process to lapse and for HVRC to file for bankruptcy. I deeply regret
that this has come to pass and that Newfound, as the largest fiscal creditor, now joins the wider list of creditors awaiting the outcome of
the bankruptcy process." 

    Enquiries:

 Newfound N.V.                            020 7 892 8300
 Stephen Bentley Group Finance Director 

 Collins Stewart Europe Limited           020 7523 8350
 Adrian Hadden

 Citigate Dewe Rogerson                   020 7638 9571
 George Cazenove / Nicola Smith



    For more information, please visit www.newfoundnv.com.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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