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January 18, 2013

 

Greek Peak hopes for best

Resort does not expect to seek more FDIC loans as it seeks buyer

GreekBob Ellis/staff photographer
Workers adjust snowmaking machines at Greek Peak in November. The ski mountain is hoping to emerge from bankruptcy proceedings but the Federal Deposit Insurance Corp. began seeking buyers for the resort this week after loaning it $2 million since the fall.

By SARAH BULLOCK
Staff Reporter
sbullock@cortlandstandardnews.net

SYRACUSE — Greek Peak is self-sustaining with the arrival of winter weather and does not need any additional loans, said Wendy Kinsella, a lawyer with the firm Harris Beach representing the resort Thursday in federal bankruptcy court.
The Federal Deposit Insurance Corp. loaned Peak Resorts Inc., Greek Peak Mountain Resort’s parent company, $204,454 from a $400,000 line of credit on Dec. 18, on top of a $1.8 million loan approved on Sept. 11.
The remaining balance of the $400,000 will not be needed, Kinsella told Federal Bankruptcy Court Judge Margaret Cangilos-Ruiz.
The loans have an interest rate of 9 percent annually, according to court documents.
Cangilos-Ruiz granted a motion to continue the current terms of Greek Peak’s Chapter 11 bankruptcy through Feb. 7.
Greek Peak has potential buyers interested in condos at Hope Lake Lodge, Kinsella told the court.
The interested buyers are individuals, not a company looking to purchase condos in a bulk sale, said Al Kryger, Greek Peak’s president.
All of the Virgil resort, including the ski center, Hope Lake Lodge and adventure center, was put up for sale this week by the FDIC as required by law, U.S. Sen. Charles Schumer said Jan. 11 at a news conference at Greek Peak.
Schumer, who pushed the FDIC to act as the resort’s lender, called for the agency to make a deal that keeps Greek Peak in operation and assist the resort in its sale process, but provided no specifics.
A favorable deal might include spreading out the resort’s debt payments over 20 years, Kryger said Jan. 11.
Kinsella and lawyers with the FDIC promised to work out a payment plan for ski and snowboard rental equipment purchased from Rossignol, a France-based company.
The payment is expected to be a percentage of revenue made from the equipment rentals, said Robert Rock, a lawyer with Tully Rinckey representing Rossignol.
Greek Peak owes $247,000 for the equipment, but only the value of the equipment’s collateral, or $110,000, is expected to be repaid, Rock said.
Best known for its skiing, Greek Peak was forced into bankruptcy after an unusually mild winter last year left the resort with little business and the lender it used in recent expansions, including the Hope Lake Lodge expansion, failed.
At a Sept. 11 bankruptcy hearing, Cangilos-Ruiz said Greek Peak had fallen into $47 million of debt.

 

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