Atlantic Canada Opportunities Agency has filed a multi-million dollar lawsuit against the owners of a Cape Breton golf course.
Over the years ACOA has granted to Ben Eoin Golf Club Ltd. approximately $3.5 million to help expand The Lakes into an 18-hole course.
The course is located in the Cape Breton Regional Municipality and overlooks Bras d’Or Lake at Ben Eoin.
According to the lawsuit, ACOA wants its $3.5 million back because the course was sold without their permission.
ACOA claims to have warned Ben Eoin Golf Club Ltd. that the sale of assets would result in a default on their investment agreement.
No defense filed
A representative for The Lakes told CBC News in 2019 that the sale of the course was inevitable because they were struggling with their operating costs and paying off their mortgage and ACOA loan debt.
According to the lawsuit, Ben Eoin Golf Club sold its assets to a numbered company whose directors are listed on the Nova Scotia Shares Register as Rodney Colburn, Mike Kenny, Siva Thanamajoran, Troy Wilson and Steve McDougal.
No defense filed on behalf of Ben Eoin Golf Club Ltd. or the numbered company.
CBC News was unable to reach their representatives on Wednesday.
An ACOA spokesman said the agency could not comment because the matter was before the courts.
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