Rudolph’s mining and road construction firms hit rough patch

Jon Rudolph's business empire is falling like a row of dominos. The construction and mine reclamation magnate lost possession of more than 130 trucks, trailers and other heavy equipment last week after one of his companies...

Jon Rudolph’s business empire is falling like a row of dominos.

The construction and mine reclamation magnate lost possession of more than 130 trucks, trailers and other heavy equipment last week after one of his companies couldn’t repay a $7 million loan to its largest creditor, General Electric.

That partial receivership hinged on the bankruptcy of another of Rudolph’s companies, Ross Mining Limited, late this summer.

And both those legal dustups happened at the same time as the failure of another Rudolph enterprise, the Ruby Creek mine, last year.

Not only that, Rudolph still has to make peace with several other creditors who are, in total, looking for more than $4 million in loan payments.

Still, the media-shy businessman is claiming he’s not bankrupt and can fight back.

Rudolph’s troubles with GE Canada Equipment Financing GP began in September, when GE came knocking on Rudolph’s door looking for $750,000 in loan payments that one of Rudolph’s many business outfits, Golden Hill Ventures Limited, failed to pay.

Rudolph had previously secured the $7 million loan from GE with mining and construction equipment, including a Bell helicopter.

GE wasn’t interested in tinkering with the loan agreement, as Rudolph had requested three times previous.

The multinational corporation wasn’t too keen on Rudolph’s attempt to stay their request for the loan payments either.

By mid-November, GE demanded its entire $7 million back.

GE has concerns about Rudolph’s viability in the near future.

There was a host of other creditors lining up behind GE to get their money from Rudolph.

The equipment was scattered across the Yukon and British Columbia in remote locations, making them susceptible to damage.

But also, Rudolph had proven to be unco-operative and belligerent during the bankruptcy trial of his other company, the Ross Mining Limited, GE said in court documents.

Rudolph’s proposal to pay off the GE loan is “not viable and (has) no legitimate chance of success as it is based on the collection of a significant receivable from Ross Mining Limited, an entity that is insolvent,” according to GE’s court submissions.

Golden Hill’s own consolidated financial statements from December 2008 state it was waiting on a $10.6-million payment from Ross Mining, GE adds.

Also, staff from PricewaterhouseCoopers, a monitor appointed by the court to survey Ross Mining’s holdings in that case, were threatened and physically intimidated by Rudolph and his son Shawn.

Rudolph also caused numerous delays during the monitor’s survey and sometimes didn’t return phone calls for several days, according to court documents.

This time around, GE wasn’t taking any chances.

On December 11, both GE and Golden Hill Ventures agreed to appoint international auditors Deloitte & Touche as a receiver for the equipment GE had secured against Golden Hill.

Four days later, Justice Leigh Gower approved the arrangement.

Several dozen off-road trucks, fuel trucks, wheel loaders and tractors were handed over from Rudolph’s possession to Deloitte’s, along with fuel tanks, a mining drill, two ATCO portable trailers and a small Bell helicopter.

“This is NOT a receivership of either (Golden Hill Ventures Limited Partnership) or (Golden Hill Ventures Limited),” wrote Rudolph in a hand-delivered statement to media released on Monday.

Golden Hill Ventures Limited is a shell company that owns 99 per cent of Golden Hill Ventures Limited Partnership.

“The receiver is leaving the GE equipment with Golden Hill Ventures Limited Partnership and GE is co-operating with Golden Hill Ventures Limited Partnership and Golden Hill Ventures Limited in proceeding with the proposal under the (Bankruptcy and Insolvency Act),” says Rudolph’s statement.

Rudolph is “reorganizing” his companies, the statement says, but no details are provided. The Golden Hill Ventures office did not return a message requesting an interview.

Rudolph’s lawyers still have to deal with several other secured creditors that haven’t yet been paid, including Caterpillar Financial, the Business Development Bank of Canada, the Canadian Western Bank and Wajax Finance.

Golden Hill owes the creditors, including GE, a total of $14 million. It also owes the Canada Revenue Agency $1.9 million.

Future proceedings will likely get bogged down in what materials Rudolph is able to use to pay off his loan payments.

Rudolph runs a complex web of companies that have lent money and equipment to each other, and the court will likely have to filter through Rudolph’s finances to find suitable receivership arrangements.

He’s the sole owner of a Ross Mining Limited, Mammoth Tusk Gold Incorporated, Golden Hill Ventures Limited and Yukon Adventures Incorporated.

Rudolph re-arranged the holdings within his companies during the last decade as he expanded outside of the construction and mine-reclamation business and into mining proper with the Ross Mining and Ruby Creek investments.

Yukon Adventures is registered in Alaska and was used to buy a yacht, named Northern Romance. It’s not clear whether Rudolph will have to sell the boat to pay off his loans.

Contact James Munson at

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A bobcat is used to help clear snow in downtown Whitehorse on Nov. 4. According to Environment Canada, the Yukon has experienced record-breaking precipitation this year. (Crystal Schick/Yukon News file)
Yukon will have “delayed spring” after heavy winter snowfall

After record levels of precipitation, cold spring will delay melt

Yukon RCMP say they’ve received three reports of youth being extorted online. (Black Press file)
Yukon youth being extorted online

Yukon RCMP say they’ve received three reports of youth being extorted on… Continue reading

Fines for contravening the fire ban start at $1,150 and could go as high as $100,000. File photo
Yukon campgrounds will open on May 1 this year. (Black Press file)
Yukon campgrounds to open early

Yukon campgrounds will open on May 1 this year. The early opening… Continue reading

A Housing First building on Fifth Avenue and Wood Street will be taken over by the Council of Yukon First Nations and John Howard Society later this month. (Crystal Schick/Yukon News file)
CYFN, John Howard Society take over downtown Housing First residence

The organizations have pledged culturally appropriate service for its many Indigenous residents

Legislative assembly on the last day of the fall sitting in Whitehorse on Nov. 22, 2018. Politicians return for the spring sitting of the assembly March 4. (Crystal Schick/Yukon News file)
Analysis: What to expect in spring sitting of the legislature

They’re back on March 4, but election speculation is looming large

A man walks passed the polling place sign at city hall in Whitehorse on Oct. 18, 2018. The City of Whitehorse is preparing for a pandemic-era election this October with a number of measures proposed to address COVID-19 restrictions. (Crystal Schick/Yukon News file)
City gets set for Oct. 21 municipal election

Elections procedures bylaw comes forward

A rendering of the Normandy Manor seniors housing facility. (Photo courtesy KBC Developments)
Work on seniors housing project moves forward

Funding announced for Normandy Manor

Tom Ullyett, pictured, is the first Yukoner to receive the Louis St-Laurent Award of Excellence from the Canadian Bar Association for his work as a community builder and mentor in the territory. (Gabrielle Plonka/Yukon News)
Tom Ullyett wins lifetime achievement award from the Canadian Bar Association

Ullyett has worked in the Yukon’s justice ecosystem for 36 years as a public sector lawyer and mentor

The Blood Ties outreach van will now run seven nights a week, thanks to a boost in government funding. Logan Godin, coordinator, and Jesse Whelen, harm reduction counsellor, are seen here on May 12, 2020. (Crystal Schick/Yukon News file)
Blood Ties outreach van running seven nights a week with funding boost

The Yukon government is ramping up overdose response, considering safe supply plan

Ranj Pillai speaks to media about business relief programs in Whitehorse on April 1, 2020. The Yukon government announced Feb.25 that it will extend business support programs until September. (Crystal Schick/Yukon News)
Government extends business relief programs to September, launches new loan

“It really gives folks some help with supporting their business with cash flow.”

Whitehorse City Hall. (Joel Krahn/Yukon News file)
A look at decisions made by Whitehorse City Council this week

Bylaw amendment Whitehorse city council is moving closer with changes to a… Continue reading

Susie Rogan is a veteran musher with 14 years of racing experience and Yukon Journey organizer. (Yukon Journey Facebook)
Yukon Journey mushers begin 255-mile race

Eleven mushers are participating in the race from Pelly Crossing to Whitehorse

Legislative assembly on the last day of the fall sitting in Whitehorse on Nov. 22, 2018. As the legislature prepares to return on March 4, the three parties are continuing to finalize candidates in the territory’s 19 ridings. (Crystal Schick/Yukon News file)
Nine new candidates confirmed in Yukon ridings

It has been a busy two weeks as the parties try to firm up candidates

Most Read