Yellowknife (Sep 22/04) - With support from its creditors and an improving Japanese tourism market, Yellowknife's biggest aurora tour company is back on its feet.

On Monday at the Explorer Hotel, Aurora World Corporation (AWC) received unanimous approval from its creditors for a repayment proposal. AWC filed for bankruptcy protection in April.

"We are intent on rising from the ashes and making this a valuable entity," said company spokesperson Darryl Dolynny.

He said the company hopes to bring 7,200 Japanese tourists to Yellowknife this season to view the aurora and experience Yellowknife.

They're off to a strong start with 1,200 Japanese tourists coming to view the aurora this fall.

"That represents a 300 per cent improvement from last year," said Dolynny. "We feel (7,200) is very attainable."

Creditors were told Aurora World has assets worth $2,449,810, while creditors are owed $3,022,745.

In its proposal, AWC said it will pay unsecured creditors up to $1,000 by Feb. 15, 2005. Additionally, the company will pay $75,000 on or before Feb. 15, 2005 and make a second payment of $75,000 on or before Feb. 15, 2006.

According to the repayment report, after the $1,000 payments are made, all creditors with balances remaining will share in the $150,000 payments on a pro rata basis.

The company has also set up a watchdog group of company creditors to ensure debt payments are made, said Dolynny. "This company has to get out of the penthouse and back into the basement," he said.

Aurora World was hit hard by the Sept. 11, 2001 terrorist attacks in the U.S., the SARS outbreak and the war in Iraq. According to a report by trustee Browning Crocker Inc., the company saw the number of clients drop from a high of 10,073 in 2000-2001 to a low of 5,221 in 2002-2003.

Since the current board took over the company on April 19, some cuts, including personnel, have been made, said Dolynny.

The company is down "seven full-time positions and a lot of the portfolios were shuffled around," he said.

Dolynny also said a new general manager for the company will be hired over the next few days.

Dolynny and staffers from Raven Tours will now head to the Kanata Show in Tokyo, Oct. 17-20.

The company is also in the final stages of drafting a five-year strategic plan, but Dolynny would not release any specifics prior to the show.