China
Famous log hotel in Canada was put into receivership after default
the developer did not pay his debt.
Fairmont Le Chateau Montebello, which has hosted celebrities such as Grace Kelly and Margaret Thatcher, is going up for sale
court-appointed receiver, according to documents posted this week on the accounting firm's website.
Evergrande's collapse was by far the biggest in a crisis that has slowed China's economic growth for years and led to a record wave of woes among construction workers. The company, which first defaulted in 2021, was once the country's largest developer by sales.
The insolvent subsidiary of Millennium Golden Jiachen Hotel Holdings Ltd. owes $58 million to creditors, including $11 million to a subsidiary of the Desjardins Group. According to court documents, a Canadian lender has filed a motion to put the hotel up for sale.
The 95-year-old hotel will remain open during the sale process. The resort, which bills itself as the largest log cabin in the world, opened as a private club at the height of the Great Depression and is now managed by Fairmont Hotels and Resorts Accor SA.
The hotel, with more than 211 rooms and suites, is located 134 kilometers west of Montreal and includes an 18-hole golf course, spa and conference center. Evergrande bought it in 2014 from Oxford Properties Group Inc., a unit of the OMERS pension plan.
Earlier this month, the Quebec Superior Court appointed Philippe Jordan, a partner at PwC, as receiver. The insolvency process was first reported by the Journal de Montreal.
“We are currently taking the necessary steps to contact interested parties, including Millennium and Accor,” Jordan said in a telephone interview. “The course of action will ultimately include putting the hotel up for sale.”
