Carl Dymond tells court new backers are in the wings, as previous investor seeks repayment

A Saskatchewan investor who won a $2-million judgment against Stephenville airport owner Carl Dymond in Newfoundland now has the green light to have it registered in Ontario, where Dymond lives.

In Ottawa on Tuesday, Ontario Superior Court Justice Marc Smith granted the application filed by lawyers for Matthew Poppel.

Smith said he would consider whether to delay enforcement for 60 days.

The judge noted that Dymond represented himself in court, and sent documents outlining potential new financial backers at the last minute.

Dymond said repaying Poppel has always been a priority, and there is a new investor in the wings to come on board, and settle the amount owing.

"We want to be able to clear off this debt," Dymond told the court.

"We are not disputing the debt. I signed that promissory note in 2023 in good faith, and we plan to pay off the debt with interest as soon as we can."

To prove that point, Dymond sent the court a term sheet from another lender to provide an unsecured loan of nearly $3 million.

But Poppel's lawyer expressed skepticism about that document.

Anisha Bhardwaj said the business terms "just don't pass the smell test."

Bhardwaj questioned the stated purpose for the loan on the term sheet, its lack of detail, and the fact that the loan is unsecured.

"I frankly have not seen a term sheet like this before. So I'm not prepared at this time to say that the applicant [Poppel] would entertain this term sheet. And I'm of the view that the term sheet should actually not be considered by the court," she said.

Bhardwaj said Dymond had previously promised to pay the judgment in full without a problem, and questioned his intent to do so now. 

"I'm deeply concerned at this request at the 11th hour for the enforcement of the judgment to be delayed," she said. 

"And I do think it's a red flag that perhaps assets will be dissipated."

Dymond said that "11th hour" notice was caused by Tuesday's court date motivating potential investors to move faster.

"We've been struggling to raise the money because of the asset class that we have and the debt that we have around the airport," he said.

Dymond noted a tenant at the airport paid $120,000 to Poppel through an assignment of rental revenues, and he thought hundreds of thousands more had been sent as well, but wasn't.

He said the pending new investment would allow him to resume business and revitalize the airport.

The interest rate of 49 per cent on the debt "has been difficult for us to exit ourselves from," Dymond said.

"We're just trying to make this work. It's been a struggle, there's no doubt about it."

Dymond expressed concerns about the impact of having the judgment registered in Ontario.

"We are not opposing, but we are worried that having this as my personal guarantee, that there will be a writ of seizure on our house," Dymond said.

He said he sent the court "a letter of intent from an institutional lender for $50 million" in case the other financing doesn't materialize.

Airport remains shuttered 

According to court documents, Poppel provided $1.1 million to a numbered company directed by Dymond shortly before Dymond acquired the Stephenville airport in the summer of 2023.

The sale price was $6.90, plus the payment of more than $1 million in existing liabilities.

The cash infusion helped Dymond land the deal, nearly two years after he first flagged his interest in the operation.

Dymond promised to reinvigorate the ailing airport, building a massive drone manufacturing operation and ensuring the return of scheduled passenger service, spending hundreds of millions in private cash and creating thousands of jobs.

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Those plans have yet to become reality.

Instead, Stephenville Dymond International Airport has been ensnared in a series of financial, legal and operational challenges in recent months.

It lost airport status as of early March, and was reclassified as a registered aerodrome.

The operation shut down altogether in early June, when Newfoundland Power pulled the plug on electrical service there.

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