Updated 08/02/2012 10:42 PM
Greek Peak files Chapter 11 bankruptcy
It's a sign of the tough financial times for a popular Cortland County tourist destination. Greek Peak Mountain Resort announced Thursday that they've filed for Chapter 11 bankruptcy. Our Katie Gibas spoke with the president of Peak Resorts Inc. and tells us what this means for operations.
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CORTLAND COUNTY, N.Y. -- To say this past winter's ski season was tough for resorts would be a gross understatement.
"We had one of the worst ski seasons that we've had in 50 years," said Al Kryger, the Peak Resorts Inc. President.
Because of the warm weather and lack of snow, Greek Peak Mountain Resort wasn't going to be able to make it through to the next ski season. Normally they would have gone to their bank for a line of credit. But in January, the FDIC closed the Tennessee Commerce Bank and took over all the loans. That means Greek Peak had to negotiate with the FDIC. The result was announced Thursday. Greek Peak has filed for Chapter 11 bankruptcy.
"Well, certainly it's disappointing. You work hard to create something and due to certain circumstances pretty much beyond your control, you're left to deal with a situation," said Kryger.
Even though they've filed chapter 11, Greek Peak officials say operations will continue as normal and they will be able to honor all ski and board season passes. But they say had the FDIC not closed the bank, they don't think the resort would have had to declare Chapter 11.
"Assuming that they would have given us a line of credit, and they had in the past, so there's no reason to think they wouldn't," said Kryger.
Now that Greek Peak has filed for Chapter 11 bankruptcy, basically everything is frozen, so creditors can't come after Greek Peak. So in the meantime, they'll be speaking with the FDIC and trying to come up with some sort of reorganization plan.
"When you have those downturns, you've got to figure out a way to deal with them. That's what we're doing, basically. We're figuring out a way to deal with it," said Kryger.
Kryger says in his 50 years at the resort, he's never seen two bad seasons back to back, so he's optimistic this ski season will be profitable.
Greek Peak officials plan to be out of reorganization by ski season.