Moonlight Basin's Assets Sold
SAM Magazine--January 25, 2012--After filing for bankruptcy two years ago, the assets of Moonlight Basin, Mont., were sold last week to the estate of Lehman Brothers Holdings Inc. According to the Wall Street Journal, Lehman began lending to Moonlight in 2007 under a $100 million credit agreement between the area and the Lehman Brothers Commercial Bank and another $70 million mezzanine-loan from the Lehman holding company, but Moonlight defaulted on the loans and had to file for bankruptcy. In the meantime, Lehman itself collapsed and filed for bankruptcy in 2008.
According to Moonlight's bankruptcy filing, the ski resort owed $95.2 million on a Lehman Commercial Paper loan and another $103.8 million to the Lehman Brothers Holdings company.
Under the new ownership, the estate of Lehman Brothers Holdings Inc., Moonlight's secured creditors were paid in full and a "substantial amount" was paid to unsecured creditors, according to a statement by the ski area. In addition, the statement reported that Lehman will continue to fund ongoing operations. \