Event production firm Rocky Mountain Production Services has notified creditors it will be putting a formal restructuring proposal to a vote in a month.
In filing a notice of intent to make a proposal, Vancouver-based Rocky Mountain’s debt obligations are frozen until the vote.
Rocky Mountain said it retains control of its assets and bank accounts and is working with its advisers to have a proposal by the end of October. It continues to complete contracted jobs and take on new work.
Rocky Mountain vice-president Rob Mingay didn’t disclose details of what may be in the company’s proposal in a month’s time during an interview with BIV.
“We’re obviously optimistic that our [unsecured] creditors will accept it because the alternative isn’t very attractive,” he said, noting that the bank, as the firm’s secured creditor, has first call on assets. “In a forced liquidation, most of the assets would go to the bank – not to the unsecured creditors.”
Mingay said businesses in Rocky Mountain’s supply chain are among its creditors.
Rocky Mountain’s recent work includes rock band Simple Plan’s Whistler concert and the 2010 Olympic flag handover.
The company has both event installation and production divisions.
While its events installation business continues to do “reasonably well,” the events production business has stalled.
"It’s a tough business with thin margins," said Mingay. “We’re not the only ones in this boat. Look what’s going on with Live Nation and the struggles they’ve had internationally.”
He noted that the local events industry had been artificially protected somewhat by the 2010 Winter Olympics.
“We have to be much leaner,” he said. “There is less corporate stuff going on where we would have done big shows up in Whistler three or four years ago with an insurance company or [another corporate sponsor]. These guys just aren’t doing these types of things anymore.”
Nonetheless, he said the company is taking responsibility for its actions. “We think we’ve made some mistakes and we’re fixing those mistakes.”
The company has roughly 25 employees after laying off a handful in recent months.
The company has been in business for 30 years and, according to president Fred Michael, “we expect to be in business for another 30."