Little Jay @ Greek Peak?

Just wondering if anybody has heard anything about potential buyers of Greek Peak. I was in a ski shop and it took a lot of prodding but I got one of the guys to say that Jay Peak has a couple of different bids in, but buyers are probably trying to get it real cheap. He said a couple other buyers are interested, but he would not disclose who they are. He did say one big outfit came and looked everything over and said, no they were not interested.

Anyways the guy at the ski shop said it is Bill Stenger, owner of Jay Peak who is interested in buying Greek Peak. The guy at the ski shop used to work with Stenger years ago at Jack Frost ski area. He said Stenger grew up in Corning NY and went to Syracuse University so Stenger probably skied at Greek gowing up.

Here is some info on Bill Stenger:

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&ved=0CFMQFjAF&url=http%3A%2F%2Fdiscovernewportvt.com%2Fabout%2Fnews%2Fbill-stenger-humble-roots-visionary-vermont&ei=SyoKUbzuG7C10AGD4oGgCw&usg=AFQjCNFkdfkLQfZdTtOUbzibER2gOVhtzg

Just wait until the Jay marketing engine hits Greek Peak. All you longtime GP skiers will become "Raised Greek."

Said this in another thread and still holds true:

"I've heard this a few times now. Bristol, Windham and Jay Peak are interested---just the thought of Jay buying the place makes me feel funny in my pants"

Sick Bird Rider wrote

Just wait until the Jay marketing engine hits Greek Peak. All you longtime GP skiers will become "Raised Greek."

We are READY!!!!!

So, if you were interested in purcashing Greek Peak, it would almost certainly behoove you to wait it out a bit.  Here's why.

If you're the FDIC, you're sitting there on top of a big load of loans, working to both sell or restructure with the current GP owners. If you restructure, you've got to find a lender to take on that debt because the FDIC is not in the business of owning that debt for the life of the loans. But the crappier this winter gets, the clearer it becomes that GP is still bleeding cash, the clearer it becomes that albatross of a water park can't support itself without a strong ski season. The FDIC will find that no lenders will sign up to finance those loans.  As we get closer to the end of the ski season without resolution, and season passes go on sale, it will become clear that passholders are not signing up at the same rate as in previous years -- after all, what family is going to buy a bunch of season passes when this whole bankruptcy is unsettled (not to mention after two crappy winters in a row).

So buyers will wait until the FDIC becomes desperate. Those loans will be sitting on the books for a long time and will be smelling really funky come April or May. Season pass sales will be down 40 or 50%.  That's when someone will step up and get GP for less than half the face falue of the current debt.

I've heard several rumors about buyers - the strongest rumors being Jay Peak as already noted.  Have also heard Windham.  And the craziest one I've heard is that Tioga Downs is waiting until GP is forced to liquidate, and they will come in and buy the waterpark, dismantle it, and move it to Tioga Downs!!

One problem with Jay's model working at GP is that the E5-B visa program was created to help Border areas spur economic growth.  My understanding is that it is restricted to use for projects that are 50 miles from an international border.  GP would not be able to tap into that investment stream.

 Greek Peak                     Jay Peak

I wonder if the new Frank-Dodd era FDIC, spurred by Chucky Schumer doesn't just forgive say $20-30 million of G.P's debt. This would get the current owners re-fi down to what the place is presently appraised/worth so a loan institution would pick up the mortgage.  Current management would remain and the place would continue along the same path for a couple of years till the next mild winter.  

No matter what happens, GP MUST get more snow making capabilities to withstand these mild winters. The place is melting down every 2-3 weeks...

What I'm hearing from JP sources indicates that this is not being considered. Counterpoint is that if you are interested in buying something it may make sense to keep it on the DL to avoid driving up the price. (That is pure speculation on my part.)

Coach Z wrote

One problem with Jay's model working at GP is that the E5-B visa program was created to help Border areas spur economic growth.  My understanding is that it is restricted to use for projects that are 50 miles from an international border.  GP would not be able to tap into that investment stream.

That might have been the intent of EB-5, but not the reality.  Brooklyn Nets new arena has had lots of funding from EB-5.

Harvey44 wrote

What I'm hearing from JP sources indicates that this is not being considered. Counterpoint is that if you are interested in buying something it may make sense to keep it on the DL to avoid driving up the price. (That is pure speculation on my part.)

Well... again, the ski shop guy also said, that some big (unamed) outfit came and looked over Greek Peak and said that no they were not interested in buying it - perhaps they might be interested, if they could get it cheap enough and are laying low by pretending not to be considering it.

Coach, EB-5 is not restricted to border areas. The so called developers of the ACR in Tupper are now looking to tap into those funds to get off the ground. See the 1/9/13 Tupper Lake Free Press editorial. Of course they still have to actually buy the land they hope to develop around the ski area.

Tupper is within 50 miles of the border.  Brooklyn is not so if its true about the Nets stadium it appears that the laws original intent has been modified by our fine members of the US Congress.

Coach, Tupper is not within 50 miles of the border and the program is basically a fast track to a green card for foreign investors willing to put up $500,000. in any project in the US. Google EB-5 and check it out.

The EB-5 program is definitely being considered by the owners, however, this program can not produce the needed finances overnight.  The EB-5 process requires about a 6-12 month window, which is obviously not ideal, for the reasons stated regarding season pass sales and the desire of the FDIC to put this baby to rest.  

There has been so much speculation about potential buyers, but keep in mind that there is not only the $50M in debt, but the funds required to improve the ski area infrastructure.  Granted, the $50M will likely be reduced to a figure half that amount, but the owners will also need to drop some serious money into the ski area, as it can't survive with the existing snowmaking system, lifts, and so on for much longer.

In terms of overall asset value, I can't imagine that the combined assets are anywhere equal to the debt, as many of the fractional ownership units have actually sold, reducing future revenue.

My prediction is that when all is said and done, the Kryger's will retain ownership, or at least a majority equity interest.

endoftheline wrote

Coach, Tupper is not within 50 miles of the border and the program is basically a fast track to a green card for foreign investors willing to put up $500,000. in any project in the US. Google EB-5 and check it out.

As the crow flies TL is darn close to 50 from the border

E5-B was started as a program for border regions but it has been expanded

Rj1972 wrote

 
My prediction is that when all is said and done, the Kryger's will retain ownership, or at least a majority equity interest.

Do you REALLY think that??? Who would partner up with them given their track record for bankrupting ski areas?? I can't imagine anyone would do that unless the new party had majority interest.

Yes, I do believe the Kryger's will be the owners when all is said and done. How much of it they will own, is beyond me, but I can't see anyone else stepping in to purchase the assets from the FDIC. Too much needs to be invested in the mountain, and I also believe that a golf course is a must for the lodge to prosper. Fortunately, the land for a golf course has been acquired over the years, but again, a huge investment would be required. Would such a business model work? I wouldn't take the risk.

There have been a number of inquiries from outsiders, but nothing that has come to fruition.

Rj1972 wrote

Yes, I do believe the Kryger's will be the owners when all is said and done. How much of it they will own, is beyond me, but I can't see anyone else stepping in to purchase the assets from the FDIC. Too much needs to be invested in the mountain, and I also believe that a golf course is a must for the lodge to prosper. Fortunately, the land for a golf course has been acquired over the years, but again, a huge investment would be required. Would such a business model work? I wouldn't take the risk.

There have been a number of inquiries from outsiders, but nothing that has come to fruition.

Was at Greek today, Thurs. 2/7/13. Was talking to a man while riding up the chairlift, and he heard Bill Maines is interested in buying the place. Maines is like the wealthiest person in Broome County.

Maines Paper & Foodservice is a foodservice distributor with nine distribution centers located throughout the U.S., providing fresh produce, beef and seafood, and other items to restaurants, convenience stores, healthcare and educational facilities and other customers located in 33 states. With sales of $2.90 billion.

So who knows if Bill Maines is interested and if he would keep on Al K. as a minority owner. Don't tell me Mr. Maines and Al will end up flying around in the Maines corporate jet trying to line up foreign investors for the EB5 program.

Anyways Mr. Maines would be able to wheel and deal, get government deals and get the golf course put in in no time. Maines is connected and knows how to work the system.