11/16/2012 09:48 EST | Updated 01/16/2013 05:12 EST

New life possible for shuttered Manitoba hotel-resort complex: report

WINNIPEG - A report on a Winnipeg radio station says a city-based company is prepared to buy the mothballed Hecla Island Resort on Lake Winnipeg.

The report on CJOB says Lakeview Hotels and Resorts is willing to take over the hotel and conference facility that closed two years ago.

Lakeview would reportedly reopen it next spring, but wants the provincial government to allow more video lottery terminals to make the business more viable.

The purchase offer is expected to surface at a bankruptcy hearing.

The resort and an 18-hole golf course were originally built by the province on Hecla Island north of Winnipeg more than 30 years ago.

A private group took over the facility in 2005 and after extensive remodelling reopened it in 2008, but the Business Development Bank of Canada later placed the hotel in receivership. (CJOB, The Canadian Press)