R.I.P. Greek Peak

Is there anything new on financing?

Article in local paper (i think thursday) stated they are still working with the FDIC to secure the 1.6 million short term loan.....not sure what that means other than they're struggling to get approved. In the article Big Al went on to say "GP WILL HAVE A SKI SEASON THIS YEAR".

parris wrote

Is there anything new on financing?

Just got this email, not good


To Our Passholders:

The hotel, waterpark, adventure center and spa remain open and operating as always and we will be open for the 2012-2013 season and all pre-season ski and board passes will be honored and most other programs and policies will remain in effect.
 
Thank you for your continued support of Greek Peak Mountain Resort. We want to keep you informed as the process unfolds as we reorganize our financial situation with FDIC. Earlier this year our lender, Tennessee Commerce Bank, was taken over by the FDIC, and all loans held by the bank were taken into "receivership" by the FDIC, including Greek Peak Mountain Resort.

The failure of the bank was not caused by any loans they have made to Greek Peak, Hope Lake Lodge and Affiliated companies. The Board of Directors and management have been working with the FDIC since then in an attempt to reorganize our debt. We have made every effort to minimize expenses, maximize profits and generally overcome the significant financial hurdles we are facing without a lender. We have been working with BDO Capital Advisors, LLC ("BDO") for several months in an attempt to obtain added equity capital or financing to purchase the FDIC loan. At this time despite these efforts, Greek Peak has not been successful in reaching a solution.

Therefore, PRI and affiliates have filed a voluntary petition in the Court under Chapter 11 of the U.S. Bankruptcy Code. FDIC will provide the funds through a "Debtor in Possession" filing to continue and sustain operations. This filing in essence gives us the time and protection that we need to find another lender and continue to manage and operate the resort as it has been in the past.
I want you to know that we have worked tirelessly to resolve this issue and will continue to pursue a resolution. I have every expectation that with the time that the FDIC is allowing us we will reorganize our debt and continue to operate for many years to come.

_____________________________________________________________________________________________________

Noah, little help please....how long can they operate while in BK before they go belly up???

Starting to look like the only ones who are going to be happy at the end of all of this are the lawyers!

I'm not trying to be negative but pragmatic with this question.  Is it likely that they'll not run this season?  I know that chapter 11 gives time and such but what kind of money will they need to run?  

I think this means they WILL be operating this year:

"FDIC will provide the funds through a "Debtor in Possession" filing to continue and sustain operations."

That's why I hope Noah chimes in...he's wicked smart ya know

It sounds to me like this was a method to force the FDIC's hand at funding the operations until ski season (aka the $1.6M). Al mentions that he hopes to emerge from ch 11 by ski season, so it would appear that this may be short-lived. However, what I don't know is what effect this will have on securing a loan for the debt that the FDIC is currently holding.  It's too bad that the Kryger's couldn't find an equity partner to step in. However, that would mean that they'd have to relinquish some control.

This article is from the pressconnects.com - The Binghamton Press & Sun-Bulletin: 8/2/12:

Greek Peak Mountain Resort, the largest ski area in the region, has filed for bankruptcy court protection, ski area executives said Thursday afternoon.

The resort has been unable to secure alternative financing after its primary lender, Tennessee Commerce Bank, was seized by federal regulators in late January.

Despite Thursday’s filing, representatives said the Town of Virgil-based operation will continue normal operations, including honoring season passes for the upcoming skiing and boarding season. Many of Greek Peak’s season pass holders live in the Binghamton, Ithaca and Elmira regions.

“We have worked as hard as possible to resolve this issue and will continue to pursue a resolution,” said Al Kryger, Greek Peak president.

The Chapter 11 filing allows the business to continue and reorganize its operations without fear of foreclosure proceedings by debt holders.

Previously, resort representatives said it was caught in a financial bind coming out of this past ski season when a lack of snow and unusually mild winter conditions led to a poor performance.

Greek Peak employs nearly 300 people in the summer months and more than 1,000 during the winter. It is one of the largest employers in Cortland County. Over recent years, it has undertaken several expansion and development projects. When Tennessee Commerce Bank was closed by FDIC regulators in late January, Greek Peak owed about $35 million on several loans, according to the company’s own tally.

“With the protection afforded under Chapter 11, a successful reorganization can be achieved enabling Greek Peak to emerge from this process as a stronger and more vibrant resort,” Kryger said.

The largest new development at the resort is 106-room Hope Lake Lodge and indoor water park and spa, opened in 2009 across Route 392 from the ski area, along with an Adventure Center featuring a roller-coaster-like mountain coaster and zip line, ropes course and a conference center. A main goal of the new facilities was to draw business outside the ski and snowboard season, though improvements to the ski area proper are part of the resort’s long-range plans.

From WBNG TV website: 8/2/12:

Greek Peak was unsuccessful in negotiating a reorganization plan with the FDIC, but the federal agency will be providing the business "Debtor in Possession" financing to continue and sustain operations.

In a release on the company's website, Greek Peak officials said the Chapter 11 filing is mean to provide time to find another lender and develop a new strategy. The business will continue as normal and they expect to be out from under Chapter 11 by the time ski season starts.

I know zip about GP's financials, but I've certainly seen properties that were self-sufficient on an operating basis continue to operate for quite a while in bankruptcy. Usually the problem is that the debt load is huge and the operation isn't throwing off enough profit to cover it. But as long as it's cash positive (pray for a good winter) they may well do as promised - keep er going.  Hope so.

There are 3 ski areas within a 15 mile radius of Cortland NY, only one of them is filing Chapter 11, the one who just built a Hotel/Water park....just sayin'

GP management will run the place into the ground, suck the life out of it then get out....this makes them 3 for 3 bankrupting ski areas

I hope the new owners will have better focus on what is important to their customers

Sad but often the case when sub optimal enterprises fail to STICK TO THE KNITTING that got them there . most failed ventures result from trying to be something that is either antithetical to the perceived need or an abysmal attempt to be something they ARE NOT , OR TRYING TO BE LIKE THE OTHER GUY .   It's often the result of unrealistic assumptions coupled with overly optimistic  financial projections and vulture style managerial practices. When the stuff it's the fan ALL act as if this is only temporary WHEN in fact the BASICS often were not here to begin with .

camp I surely hope that GP gets its act together and it survives albeit in a different modality but survives nonetheless.

as an owner buying into gp/hll a few years ago i obviously have a different perspective of the viabilty of the improvements and what gp can or should be but i'd be lying if i said i din't always have a fair amount of reservation. in any case it paints a picture of the management when i have to come here to found out any news about whats going on....

I feel for ya pal

I TRULY hope your investment will be ok, giving you and your family years of enjoyment...fingers crossed

Honestly, if it wasn't for years of false promises from GP management I would feel better about this....i don't trust them to do what is right for YOU or any of their other customers/investors.

yea i hope it all works out. i just called a few owners and they had less of a clue than me about what's going on, i guess having  skiforum induced ADD has it benefits at times...

Mind boggling...you guys (the owners) should've been notified wayyyyyy be4 it went public

the hits just keep on coming with these folks

According to the ch 11 filing documents posted on the Cortland Standard's website, GP and related companies have outstanding debt of $52M.  As a basis of comparison, Mount Snow and Attitash were sold back in 2007 for around $73M, and GP is no Mount Snow.  I had thought that GP's outstanding debt was around $30M.?????????

According to the ch 11 filing documents posted on the Cortland Standard's website, GP and related companies have outstanding debt of $52M.  As a basis of comparison, Mount Snow and Attitash were sold back in 2007 for around $73M, and GP is no Mount Snow.  I had thought that GP's outstanding debt was around $30M.?????????

One place it says $52 Million in another it says $22 Million. In the past the figure seemed to be $32 Million.

http://www.cortlandstandard.net/images/PDFs/Abstract%202.pdf


these numbers are scary

So does this mean they're not getting the new quad chair???