by Rex Wockner
The financially disastrous 1st World Outgames, held last summer in Montreal, will pay its biggest creditors 15 or 20 cents of each dollar owed them.
Creditors voted to accept the settlement April 25 rather than see the Outgames declare bankruptcy, which would have made it difficult for the Outgames to collect money it is still owed, leaving its creditors in a worse situation.
The Outgames lost more than $5 million Canadian. Some $3 million of that has been written off by governments that loaned the organization money.
There are 308 creditors remaining who are owed about $2.3 million. Of those, 121 who are owed $500 or less will get all their money, said the Montreal Gazette. More than 100 who are owed more than $500 have agreed to accept a flat settlement of $500.
That will leave about 80 larger creditors who will receive pennies on the dollar. The Canadian dollar is worth about 90 cents U.S.