GREEK PEAK FILES FOR BANKRUPTCY PROTECTION
SAM Magazine--Cortland, N.Y., August 3, 2012--On August 2, 2012, Greek Peak Mountain Resorts, Peak Resorts, Inc (PRI) and affiliates, filed voluntary petitions in the Bankruptcy Court under Chapter 11 of the U.S. Bankruptcy Code. This filing gives Greek Peak the time and protection needed for reorganization.
Earlier this year, Greek Peak Mountain Resort's (GPMR) lender, Tennessee Commerce Bank, was closed by FDIC and all loans held by the bank, including those of GPMR, were taken over by the Federal Agency. The failure of the bank was not caused by any loans Tennessee Commerce Bank made to Greek Peak and affiliated companies. In the five and a half months leading up to the filing date, Greek Peak has worked with BDO, Capital Advisors to resolve its financial situation with the FDIC, while minimizing expenses and maximizing profits. Despite these efforts, GPMR has not been successful in negotiating a reorganization plan with the FDIC. The Federal Agency will provide funds through a "Debtor in Possession" financing to continue and sustain operations.
Greek Peak Mountain Resort will be continuing normal business operations and will be serving its customers in the normal course of business, including hosting the Ski Areas of New York (SANY) 2012 Expo from September 17-19. There will be no immediate changes in operation or staffing outside of normal operations.