November 2, 2007 (Victoria, BC) – The organization that hosted and organized the 2007 UCI BMX World Championships in Victoria this past July, the Victoria 2007 BMX World Championship Society, has declared bankruptcy according to documents filed in BC courts on October 17. C.E. Craig and Associates Inc. was apppointed the trustee.

The organization apparently owes some $308,053 against assets worth about $166,992, leaving a shortfall of $141,131. Among the creditors – all of whom are unsecured – we find organizer De Armond Management Ltd. ($62,500); CBC ($43,000); and the Canadian Cycling Association ($15,000). The first meeting of the creditors on the matter was held today in Victoria.

The 2007 BMX World Championships took place in Victoria from July 26-29 and while hoped for sponsorships were not realized the news of the bankruptcy has surprised the industry.

What’s still up in the air is the status of the BMX Worlds UCI level track which is rumoured to possibly end up in the hands of the US-based BMX organization, ABA (American Bicycle Association), as British Columbia remains a stronghold for the ABA within Canada in the ongoing turf war with the Canadian Cycling Association (CCA).

Pedal reached Lorraine Lafrenière, Chief Executive Officer of the CCA, who confirmed that the CCA is a creditor and confirmed that the BMX Worlds organizers had trouble securing corporate support. She also spoke about the “ongoing turf war” with the ABA BMX, describing the latter group as “an American, for profit organization.” Lafrenière pointed out that the BMX track was built with Canadian government funds, raising questions about what taxpayers might think if the facility was taken over by a foreign entity. She also hopes that all BMX events in Canada will fall under Canadian jurisdiction. Lafrenière continued however to emphasize that the CCA was willing to share the facility and stressed that club members should not be punished because of the turf war.

Pedal tried to reach Victoria-based BMX World’s event organizer, Marischal De Armond of De Armond Management Ltd., without success. De Armond Management Ltd., as noted, is also a creditor.

The The Victoria 2007 BMX World Championship Society Board of Directors issued the following statement regarding their decision to file for bankruptcy.

The Victoria 2007 BMX World Championship Statement

Date: October 16, 2007

RE: Decision to file for bankcruptcy

Statement

It is with profound disappointment that the Board of Directors of the Victoria 2007 BMX World Championship Soceity has announced a decision to file for bankruptcy.

It is truly unfortunate that an event as successful as the 2007 UCI BMX World Championship, an event that showcased the community and Canada in the best possible light, left a world-class track to help develop the sport of BMX and generated more than $2.1 million in government tax revenues should end on a disappointing note.

Despite the tremendous success of the event itself and an estimated economic impact in excess of $4.3 million, the project concluded with a deficit and is unable to pay its suppliers in full.

The Society was preparing to make a proposal to its suppliers, averaging 50% to 55%. The proposal would have asked the larger public sector suppliers to agree to accept less in order to provide more to the smaller private sector suppliers. However, when one of the suppliers placed a garnishment on its bank account, the Society had no viable option but to file bankruptcy to ensure fairness to all the other creditors.

All questions should be directed to the bankruptcy Trustee Collen Craig 250-386-8778.

Board of Directors
Victoria 2007 BMX World Championship Society