Walton International Group granted bankruptcy protection
Documents show that a drop in energy prices has led to huge losses for Alberta owned off shore investment business.
One of the largest property developers in Alberta is in creditor protection after losing $67.3 million in the past three years following the oil downturn and troubles south of the border.
But Walton has also received several serious legal hits over its offshore real-estate investment practices. Their Asian offices were raided by government banks and forced to close two of their biggest offices under charges of fraudulent investment practices.
Walton International Group Inc. and numerous related companies were granted protection from creditors last week by a Calgary judge, according to documents filed by court-appointed monitor Ernst & Young. This gives Walton time to restructure and resolve its debt problems.
The Calgary-based developer administers about 43,000 hectares of land in North America, including 15 land development projects in Alberta and Ontario, and six in the U.S., according to an affidavit by chief executive William K. Doherty.
Locally, Walton has bought up large tracts of Tutela Heights and other acreage close by. It was then resold to Asian investors in packages, before being resold on the Canadian market at enormous profits.
New protective legislations have cut into this part of their business as well.