Sen. Schumer Pushing FDIC to Approve New Loans For Troubled Greek Peak
U-S Senator Chuck Schumer is expected to make an appearance at troubled ski resort Greek Peak in Virgil. Schumer is calling on the federal government to approve new financing for the resort after its previous lenders went under.
According to Schumer, there is a real possibility that Greek Peak may not open next winter unless the resort obtains new financing soon.
Failure to obtain a loan to replace existing financing from the failed Tennessee Commerce bank could doom the operation.
The Bank headquartered in Franklin Tennessee, held millions of dollars in loans for the Virgil operation.
Senator Schumer is expected to make a stop at Greek Peak to make an appeal to the Federal Deposit Insurance Corp. to expedite a loan review for the company.
Schumer says without the new loan over 1,000 jobs are at stake.
Greek Peak President Al Kryger has said the company owes about $35 million on several loans. The resort has undergone a major expansion over past five years including the addition of the new hotel, the water park and the adventure center.
The main lender, Tennessee Commerce bank was closed by federal regulators in late January. Since then Kryger has been searching for a new lender.
However no new lenders have come forward, couple that with the mild winter and Greek Peak is now in dire straits.
Schumer says Federal regulators are reviewing the resort's financial condition to determine if the successor bank can grant a new loan to the operation. Schumer will request that the FDIC expedite that review and "explore every viable option to keep Greek Peak open next ski season."