The resort plans to remain fully operational during the bankruptcy process. (Mountain Creek)
New Jersey’s Mountain Creek last week filed a voluntary petition under Chapter 11 that will allow the company to restructure its debt and attract new outside investment.
The four-season resort, located 47 miles from New York City, with 167 skiable acres on four mountain peaks, night skiing on all runs, a bike park, waterpark, and multiple restaurants and lodges, will continue to operate fully during the bankruptcy process.
“Today’s filing will allow us to deal with the legacy debt we inherited from the property’s former owners and attract new investment into the resort,” said Jeff Koffman, CEO of Mountain Creek Resort. “We remain committed to seeing Mountain Creek develop to its full potential with new hotels, new outdoor attractions and expanded residential homes. Our vision to create a world class, four-season resort here in New Jersey is still our main objective and this move will put us in the best position to achieve that.”
Subject to Court approval, the debtor-in-possession financing, along with the company’s cash from operations, is expected to provide ample support to its continuing business operations and minimize disruption throughout the season. Mountain Creek will maintain its staffing levels and continue without any layoffs.
Along with the filing, Mountain Creek filed a number of “first-day” motions with the Court to minimize the disruptions to any business operations and facilitate a smooth transition into chapter 11. Among other things, the motions request authorization to honor employee pay and benefits along with certain customer programs currently in place, such as seasonal pass holders, Triple Play cards and gift cards. Customer deposits for weddings and other events will also be honored.