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Federal Bankruptcy Judge Approves Greek Peak Bailout
Thursday, September 13, 2012
Federal Bankruptcy Judge Approves Greek Peak Bailout
A federal bankruptcy Judge has cleared the way for nearly 2 million dollars in financing that will keep Greek Peak Resort in Virgil operating through the upcoming winter months.
 
Greek Peak C-E-O Al Kryger has said the money was critical to keep the doors at the resort open.
 
On Tuesday the federal bankruptcy court Judge in Syracuse ruled that the Federal Deposit Insurance Corporation could release a $1.8 million credit line to Geek Peak.
 
Federal regulators assumed the resorts $47 million dollar debt load after the companies previous lender Tennessee Commerce bank failed.
 
The F-D-I-C released $175 thousand dollars to Greek Peak earlier this summer to help keep the doors open.
 
U-S Senator Chuck Schumer intervened on the resorts behalf urging the F-D-I –C to loan the money. Schumer cited the nearly 1000 Greek Peak employees and the impact on the local and regional economy.
 
Prior to the bankruptcy Greek Peak embarked on a massive expansion over the last five years, first opening the Hope Lake Lodge and indoor water park, then more recently opening a new adventure center which includes a mountain coaster ropes course and other activities. The idea was to transform the ski center into a year round destination. The expansions happened as the economy tanked that coupled with a lackluster winter pushed the resort into the red.
 
As part of the agreement the resort operators must conduct a bulk sale of the unsold Hope Lake Lodge Condo quarter shares. 
 
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