Big Burke announcement

[MEtoVTSkier]

The only thing new that I saw was in reviews. Hadn't seen that before.

Jerry Davis Abby, I'm not going to get into thus via Facebook but you are not correct and Cindy is. The sole issue is the State not approving construction costs that are legitimate and contractually owed. If this was done, the hotel would be open, regardless of if they had all the funding or not. I have worked with this group for many years and them paying their bills is not an issue at this time. Jerry Davis (PeakCM)

 

[VTKilarney]

If Davis was convinced that Stenger/Quiros would pay their bill he would have released the certificate of occupancy.

 

[thetrailboss]

If Davis was convinced that Stenger/Quiros would pay their bill he would have released the certificate of occupancy.

Exactly. And, again, he is criticizing the State because it is a good scapegoat.

 

[MEtoVTSkier]

Yep. He's wants his cut off the EB5 cash cow as well, so he's gonna blame the State too, not his possible easy source of future income.

 

[River19]

Well, it seems like every time we have speculated we have been more right than wrong no matter how much the remaining supporters of Jr etc. said we are all Negative Nellies.........I'm not sure they are really heading towards folding but they are certainly taking consistent hits to the head and staggering against the ropes at this point.

I have said this several times in the past 6 months or so.......that I thought December 11th was aggressive and I didn't think they would hit that.......I thought they wouldn't miss the Christmas/NYE Holiday season as that was the real kickoff for the season and a real money maker if you have F&B and lodging up and running and some snow. I always assumed they would struggle to make snow.....I never thought they would miss MLK, President's weekend and School vacation week......and now, let's be honest, they are in jeopardy of missing the opening and part of the Bike season.......seriously?

And it isn't just the hotel......the whole mountain is in "what is going to be open today" mode......and that is where things seem ugly for me

Just wow........

 

[dlague]

Channel 7 is also reporting:



Too bad they will miss LSC graduation, part of wedding season, and Memorial Day.

When I graduated from LSC we had our graduation party there at Bear Den and there was a lot of bar sales going on - but the bartender is gone so - hmmmmm!


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[zeke]

Wouldn't Q senior have enough personal $$ to make this all go away and open the hotel. I thought the prevailing thought was he was an extremely high net worth individual.

Fairly certain he made more than what is owed on the hotel on the "sale" of the land to themselves. If memory serves it was 7 or 9 million. And I'd bet anything that the entity that owned that land "solely owned by the q family" was paid first.

But I could be wrong

 

[thetrailboss]

Fairly certain he made more than what is owed on the hotel on the "sale" of the land to themselves. If memory serves it was 7 or 9 million. And I'd bet anything that the entity that owned that land "solely owned by the q family" was paid first.

But I could be wrong

No, I believe it. And now they mysteriously don't have any source of money to pay it off and open it. Interesting.


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[VTKilarney]

From VTDigger:

The plant is to be built on land originally purchased by GSI of Dade County, Florida, a company owned by Quiros. GSI bought the former Bogner plant and 25 acres in Newport for $3.1 million in September 2011, according to land records. Investors entered into a purchase and sale agreement for seven acres of the land as part of the 2012 offering memorandum, which was verified in a statement from Quiros. The agreement lists the price as $6 million, and the payment was to be made by Jan. 31, 2013.

.

 

[zeke]

From VTDigger:




.

Between the eb5 admin fees and these ridiculous land deals-that's the business they're in. Not ski resorts or bike parks or aquatic centers.

 

[thetrailboss]

Between the eb5 admin fees and these ridiculous land deals-that's the business they're in. Not ski resorts or bike parks or aquatic centers.

You see what the game is?


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[MEtoVTSkier]

Just an EB5 money grab by selling back and forth between the shell company's.

 

[VTKilarney]

If the rumors of bankruptcy are true (and I don't know that they are), it is well worth the time to go back and read this article:
http://vtdigger.org/2014/01/14/community-fears-history-will-repeat-q-burke-mountain/

 

[thetrailboss]

Just want to stress again that the bankruptcy is only a rumor that is flying around the town and here now. I think it is fair to say that they have had a really bad year and that they need to make some changes.

This was one comment that was made on FB yesterday amongst my contacts was that a bankruptcy would be a good thing. I don't think so. Local vendors and folks would get stuck with the unpaid bills.

 

[thetrailboss]

Just found one of the FB comments:

I have also hear that... Rumors are flying but as of yesterday there is nothing listed on the VT bankruptcy courts website, but if this was done last week, it takes a few days. With that said, if they were to file it would be Chapter 11 and would be a restructuring of debt and payment plans to creditors with a possible chapter 21 filing too. I think Burke is like the auto industry or Wall Street bail outs, it's too big to fail and would drastically effect any future EB5 money for future development. If this is true my personal take is that it would not be necessarily a bad thing... It will get them out of unsecured debt so they can move forward, and hopefully grow.

 

[VTKilarney]

I'm still scratching my head over this "Chapter 21" business.

 

[thetrailboss]

If the rumors of bankruptcy are true (and I don't know that they are), it is well worth the time to go back and read this article:
http://vtdigger.org/2014/01/14/community-fears-history-will-repeat-q-burke-mountain/

This quote jumps out....as mere words and not understanding:

Quiros understands the community doesn’t like the new name, he says. But he believes they’ll come to appreciate the value it brings, once he proves the long-term value of his plan. He thought about public perception “300 percent,” and stands by his decision.

“If I make a mistake here, I lose everything! I lose everything,” Quiros says. “Because in the world market, I don’t get the money from a bank. I get from word of mouth.”

He clearly doesn't understand that the word of mouth for him is not good at all.

 

[thetrailboss]

I'm still scratching my head over this "Chapter 21" business.

Me too. The poster does not understand bankruptcy law.

 

[VTKilarney]

If there is a bankruptcy, and it is a Chapter 11 bankruptcy, existing management could potentially stay in place. This is nothing to cheer about.

But I am not so sure that bankruptcy is really going to happen since it would truly spell the end of EB-5.

 

[mbedle]

What exactly are we talking about with bankruptcy? I am assuming that you mean the hotel and conference center. Or are we talking about the ski resort? As just recently posted, aren't these two separate LLCs? As far as the comment that Steiger and Quiros are only in this for the EB-5 money, and not the skiing, I have to disagree with that. I would think that looking at how well Jay Peak is doing and what growth they had since using the EB-5 program to expand, would negate that perception.