Great River Journey has received a third extension on its proposal to avoid bankruptcy, but time is running out for the wilderness tourism operation.

Last February, the Yukon company announced it had fallen into debt just three years after it opened its doors to clients.

At that time, more than $11 million had been invested in the company by the territorial and federal governments, private investors and a number of Yukon First Nations.

George Asquith, president of Great River Journey, has cited the economic downturn and scheduling delays in construction as causes of the company's current financial situation.

Last April, the company filed a notice of intention to prepare a proposal to present to its creditors in an effort to avoid bankruptcy.

The company had 30 days to file the proposal, but requested an extension at the end of May.

It asked for, and was granted, a second extension in mid-July and Yukon Supreme Court Justice Leigh Gower granted a third extension Tuesday afternoon.

It now has until Oct. 8 to file the proposal.

Grant Macdonald, the lawyer for Great River Journey, said Tuesday the court can only grant extensions for a period of up to five months, according to the Bankruptcy and Insolvency Act.

If the company hasn't prepared a successful proposal by Hallowe'en, the company would be considered, said Macdonald.

However, Macdonald said the company has more optimism now than it did a few weeks ago regarding talks with investors.

In an affidavit filed with Yukon Supreme Court on Monday, Asquith says the company "has used the time provided to diligently pursue the involvement of an investor or group of investors to enable a proposal to be prepared.”

Asquith says it would take an estimated $2.5 million to re-launch the Great River Journey tour.

Macdonald said the company's secured creditors, the Business Development Bank of Canada (BDBC) and the First Nations Investment Corporation, do not oppose the continuous extensions.

He reminded the court that Great River Journey has defaulted on its mortgage and other financial agreements with BDBC.