May 15, 2020
Carriage Hills Vacation Owners Association (the "Association"), a not-for-profit corporation made up of approximately 9,000 interval owners who own an interest in Carriage Hills Resort — a timeshare resort located in Horseshoe Valley, Ontario — had an administrator appointed under s. 101 of the Courts of Justice Act over its assets and the land on which the resort operates. The Association, which incurred an operating deficit between 2015 and 2018, attributes its financial issues to various factors. The market for timeshares has declined in the last several years, and there are a number of unit holders who have abandoned their units and refuse to pay their share of the operating costs. At the same time, as the resort continues to age, the Association continues to incur increasing capital expenditures to maintain the property. These difficulties have been exacerbated by the COVID-19 pandemic as owners are not allowed to use their timeshare intervals until at least June. Due to its corporate structure as a non-share corporation, the Association does not have a viable way to remedy the underlying issues outside of a court-supervised restructuring. The Association intends to devise a process to address the delinquent owners and allow non-delinquent owners to "opt-out" and relinquish their interest in the resort. The resort's neighbouring "sister" resort, Carriage Ridge Resort — which has approximately 4,000 members — is in the same situation and its members' association, the Carriage Ridge Owners Association, has applied for identical relief in separate proceedings. The application hearing was attended by approximately 1,000 people via Zoom judicial video conference. BDO was appointed administrator. Counsel is TGF for the applicants, Aird & Berlis for the administrator and Blaney McMurtry for certain individuals.