R.I.P. Greek Peak

I think the reason for my confusion is that the newspaper only has two documents listed.  The first one is a general overview that encompasses the entire resort, including all subsidiaries.  The second document only lists the asset and debt details of the ski area.  There should be additional documents for Hope Lake Investors and the other subsidiaries which are reflected in the lump sum on the first document. It would appear that when all ventures are combined, the outstanding debt is $50+M.

Dig the avatar Rj.

Not too much new here, but thought I would post this link to the SAM news item:

GREEK PEAK FILES FOR BANKRUPTCY PROTECTION

August 3, 2012

SAM Magazine--Cortland, N.Y., August 3, 2012--On August 2, 2012, Greek Peak Mountain Resorts, Peak Resorts, Inc (PRI) and affiliates, filed voluntary petitions in the Bankruptcy Court under Chapter 11 of the U.S. Bankruptcy Code. This filing gives Greek Peak the time and protection needed for reorganization.

The rest:

http://www.saminfo.com/news/article.php?tid=5954

Looks like GP got their 1.6 million emergency loan. Please God, let there be lots of snow and cold temps. this Winter.

http://www.pressconnects.com/article/20120807/NEWS01/308070047/Schumer-Chapter-11-filing-complicates-Greek-Peak-s-future

"The $1.6 million lifeline the Federal Deposit Insurance Corp. threw to Greek Peak in the form of a emergency loan will allow Cortland County attraction to continue operating through this winter, but the resort’s recent Chapter 11 filing adds yet another challenge to the long-term viability of the largest ski area in the region, said. U.S. Sen. Charles Schumer."

Need a 1.6 million dollar loan??? Apparently Chapter 11 is the answer

hopefully the jets and their families are spending some big $ and not busting up the place with their brawls

c'mon lake effect baby, pleease!

still trying to get up for some mtb one weekend and do my part contributing a few bucks at the bar but plans keep falling through. passholders picnic will be here before ya know it, gonna have an interesting vibe this year...

pretty standard actually.  That's called DIP financing. (Debtor-in-Possession).  Because they finance the 11 they have priority over all creditors; it's pretty good position to be in as a creditor.  Besides, Chapter 11 wouldn't really work without it.  You need fresh money and you can't get it unless the new money is put at the front of the line.

Noah John wrote

pretty standard actually.  That's called DIP financing. (Debtor-in-Possession).  Because they finance the 11 they have priority over all creditors; it's pretty good position to be in as a creditor.  Besides, Chapter 11 wouldn't really work without it.  You need fresh money and you can't get it unless the new money is put at the front of the line.

So, chapter 11 protects them against their old creditors, and now their only financial obligation is the new 1.6 million dollar loan???? Do I understand that correctly??? If that's the case how long can they operate before they have to start paying back the chapter 11 monies.

Chapter 11 doesn't get them off the hook for their pre-filing debt.  It just affords them time so that their creditors don't go after them.  All creditors will eventually file a claim with the bankruptcy court.  They can't burn all of their bridges.  For example, they owe Rossignol and the power company money.  GP will need both of these vendors down the road.

The $1.6m simply buys them time.  My understanding is that the FDIC required GP to file for Chapter 11 before loaning them additional funds.  

What I believe GP is attempting to do is negotiate a settlement with the FDIC, so that a new lender can pick up the debt.  For example, if GP owes $52m, they want the FDIC to accept $30m.

Thanks for the clarification...seems that there's no penalty for bad big biz anymore

Camp I really don't know how you reach that conclusion in this case but you seem to have wanted to reach it anyway so have at it.  I don't know anything about the particulars of this case.  Generally speaking, if the owners want to remain the owners in an 11 they have to pay all the creditors.  DIP financing often just gives them operating capital when they ordinarily wouldn't have access to it and the priority treatment the DIP financer recieves is necessary to obtain the DIP financing in the first place (makes sense, right?  Who's gonna loan money to a sinking ship unless they're given some priority if the ship can't right itself).  If it doesn't work the thing will tank, go chapter 7 and the creditors can pick over its bones which is all they had the right to do anyway.  But the owners lose in that case as all assets will be sold and the proceeds used to pay creditors.  Chapter 11 can save businesses which in turn can save jobs and local economies.  It's always worked that way.  Creditors take risks when they loan money; they're big boys, they can handle it.

Noah John wrote

Camp I really don't know how you reach that conclusion in this case but you seem to have wanted to reach it anyway so have at it.  

You hit the nail right on the head with that one

Noah John wrote

  I don't know anything about the particulars of this case.  Generally speaking, if the owners want to remain the owners in an 11 they have to pay all the creditors.  DIP financing often just gives them operating capital when they ordinarily wouldn't have access to it and the priority treatment the DIP financer recieves is necessary to obtain the DIP financing in the first place (makes sense, right?  Who's gonna loan money to a sinking ship unless they're given some priority if the ship can't right itself).  If it doesn't work the thing will tank, go chapter 7 and the creditors can pick over its bones which is all they had the right to do anyway.  But the owners lose in that case as all assets will be sold and the proceeds used to pay creditors.  Chapter 11 can save businesses which in turn can save jobs and local economies.  It's always worked that way.  Creditors take risks when they loan money; they're big boys, they can handle it.

Thanks dumming that down so I got it

Found this write-up from Oct. 2011 about Greek Peak and Hope Lake Lodge... etc. Among other things it mentions that the Lodge/Waterpark cost was a total of $47 million to build. Also Al wants to put in an 18 hole championship golf course and 1,200 additional housing units.

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=0CEwQFjAE&url=http%3A%2F%2Fwww.resorttrades.com%2Farticles.php%3FshowMag%3DResort%26act%3Dview%26id%3D843&ei=lgskUNqJA8eP0QG74YC4DA&usg=AFQjCNGdYH7T4vmU5m5D85_PJ3QzarmWzA

This worked out great for them....


“Greek Peak Mountain Resort has never been one to retreat from a down economy. Our 106-unit lodge and indoor waterpark opened in the midst of one of the worst recessions of the 21st century. Additionally, the $10 million Adventure Center opened in June 2011 while others were still hesitant of an economic recovery. The point being, in a tough economy it’s easy to hold back; however, it may be one of the best times to be aggressive. It is a great time to be visible and stand out because consumers seek recreation in good times and bad,” Kevin said.


Sure sounded good a year ago

Although a nice guy, Kevin is part of the problem, as he is in way over his head.  What value does he bring to the resort?

Rj1972 wrote

Although a nice guy, Kevin is part of the problem, as he is in way over his head.  What value does he bring to the resort?

BIINGO....they need to get somone in there who is qualified to run a resort, like you know, someone with experience at a ski resort....what a concept. Problem with that is you'd have to pay that person what they are worth and let them do their job....aint gonna happen.

RJ, you ski with Murph and Boo???

Who does in fact run the skiing operations?

It's not Kevin (Morrin) he's the "Sales and Marketing" guy. They give him a fancy title - Vice President of Sales and Marketing.

Then you have Wes Kryger who is Vice President of Operations.

Then Big Al - the "President and General Manager".

Is there any other high level managers?

So: Maybe Al Kryger, Wes Kryger and Kevin are the ones running ski operations.

The other question is, who do they have qualified to run a four diamond condo hotel?  Is the GM position still vacant, or did they fill it?

No, I don't know Murph...

I made it to page seven on this thread. The Greek Peak people remind me a little of the Gore people - you are hard on your mountain, but I think you are loyal and really like it a lot.

Zippy wrote

I made it to page seven on this thread. The Greek Peak people remind me a little of the Gore people - you are hard on your mountain, but I think you are loyal and really like it a lot.

I don't think it matters what hill is home, when something bad happens all the "homers" will raise a little hell.

 Guess I'm just disgusted that next year we'll have to make a choice, a choice of where were gonna ski. i've been skiing at GP my entire life and hope to continue. Problem is will we be gambling next year with our pass money??? Time will tell. For 300 bucks I'll gamble that they'll be open for the 13-14 season, but the guys I ski with may not want to due to buying 4 to 5 passes for family and I don't balme them, 1500 is a big gamble. At the end of the day it's more important to me who I ski with than where.....who knows, maybe it's time the A18 Gang went to Labrador....we like meeting new ski patrol