Greek Peak Sale Approved, New Owners Schedule a Press Conference For Friday
A Federal Bankruptcy Judge has approved the sale of the Greek Peak Ski Resort in Virgil to to pair of Elmira based businessman for just under $7 million dollars.
U-S Bankruptcy Judge Margaret Cangilos-Ruiz approved the sale of Peak Resorts assets to Marc Stemerman and his business partner John Meier of Elmira. The two men were among four bidders at Tuesday’s bankruptcy auction in Syracuse.
The next highest bid was from Canadian based Vista, which owns several hotels. One of the other bidders M.R. Dirt did not bid on the Hope Lake Lodge and Water Park, and focused its attention on building lots and acreage.
The bankruptcy auction, which was set up to satisfy Greek Peak’s $47 million dollar debt, the troubled resort was forced to file for Chapter 11 bankruptcy protection back in August after its primary lender, Tennessee Commerce Bank, of Franklin, Tenn. was shut down by F-D-I-C. A unusually mild winter in 2012 also compounded the resorts financial problems.
Since then the F-D-I-C had granted the resort a nearly $2 million dollar line of credit to keep the operation going this winter.
Stemerman is the President of Chemung Supply Corporation, a highway construction and supplies Company. Meier owns four different companies which manufacture parts for heavy equipment and trucks. Both men also are part of an economic development organization that works to bring business to Chemung County.
The partners were expected to put 10% or $763 thousand dollars down to secure their bid.
Several of the debtors that are owed money from the resort including money from the previous expansion objected to the sale, many of those outstanding debts will be written off as part of this sale.
An Attorney for Greek Peak argues that the auction process was fair and that the proposed sale price of $6.7 million is the best offer that would come from the auction. The attorneys say the assets were advertised to 160 different groups, and with the ski season ending the sale must move ahead because the property will not be as attractive to buyers during the summer months.
U-S Senator Chuck Schumer who intervened on behalf of Greek Peak several times over the past eight months issued a statement saying he is optimistic about the resorts future following the sale. Schumer said he plans to work with the new owners to ensure that the nearly 1000 workers at Greek Peak remain on the job going forward.
A press conference with Meier and Stemerman is scheduled for this morning; the new owners say they plan to invest in the ski center including updates to the main lodge as well installing a new quad lift. Meier and Stemerman have said the plan to work with current management and will offer season passes at $299 each, with discounts for each additional family member’s pass, and will honor discounts on Hope Lake Lodge condominiums.