Greek Peak Files For Protection; Plans To ‘Emerge Stronger’
The actual filing was by parent company Peak Resorts, Inc. (see editor's note below) and four affiliates in the Northern District of New York Court also listing $12.9 million in assets. The filing gives the Cortland, N.Y. ski area time to reorganize its finances and pay off its debts under bankruptcy protection from its creditors.
The company issued a news release saying it plans “business as usual” and will operate normally this winter. Kryger said he plans for emergence from bankruptcy “by the ski season.” All passes and reservations will be honored and there will be “no immediate change in staffing.”
The financial situation escalated early in the year with the failure of the Tennessee Commerce. The bank was taken over by the Federal Deposit Insurance Corp. (FDIC) and assumed the former bank’s loans. The poor ski season only made things worse.
U.S. Sen. Charles Schumer (D-NY), the third-ranking member of the Senate Banking Committee made a media-splashed plea last month at the resort, appealing to the FDIC for fast approval of a $1.4 million loan to assure the resort’s employees would have winter work. That plea was ineffective. (See SnoCountry.com story July 14, 2012). http://www.snocountry.com/index.php/snonews/entry/greek-peak-needs-fast-fdic-action-to-survive-sen-schumer-makes-appeal.html
However, the FDIC has agreed to provide funds to the resort to continue operations through “debtor in possession financing,” the company said.
What It Means: Bankruptcy protection is a slippery slope, regardless of the business. It appears to be Greek Peak's best recourse after Sen. Schumer couldn't get the loan deal pushed. We wish the resort well in getting this behind them.
Photo: Greek Peak Resort
(Editor's Note: No need for confusion. There are several companies called Peak Resorts, Inc. in the country. Greek Peak is not a part of the much larger Peak Resorts corporation based in Wildwood, Mo. that owns and operates 13 resorts, among them Mount Snow in Vermont and Attitash in New Hampshire. The Peak Resorts, Inc. (PRI) referred to in this story is located in Cortland, N.Y. and is, as stated, the parent company of Greek Peak Resort.)