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$58,000,000 offered for Jay Peak

BodeMiller1

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Hmmm....
JAY, Vt. (WCAX) - Jay Peak could soon have new owners.

Pacific Group Resorts has made an offer of $58 million for the four-season resort.

Other prospective buyers now have 10 days to match that offer before a judge rules on the sale.

Jay Peak has been in the hands of a court-appointed receiver since 2016 when the Kingdom Con scandal surfaced.


 

2Planker

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Hmmm....
JAY, Vt. (WCAX) - Jay Peak could soon have new owners.

Pacific Group Resorts has made an offer of $58 million for the four-season resort.

Other prospective buyers now have 10 days to match that offer before a judge rules on the sale.

Jay Peak has been in the hands of a court-appointed receiver since 2016 when the Kingdom Con scandal surfaced.


Ain't gonna happen at that price.
Boyne pulled out, but Vail is still talkin'
 

BodeMiller1

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I have no idea if it's a good price. I do know that when you have high inflation money paid down the road is not worth as much as the original loan amount (have you ever heard of a resort that does not have notes? (Most of them probably get seasonal loans). Does Jay Peak operate at a profit? Is global warming real? Are there enough locals to run the place without bringing in seasonal workers? Is there more land the resort would own to build condos and second homes? Has ManBearPig been seen in the area? :sick:

If Vail wants it; looks like they'll pick it up. The longer they wait the lower the price (maybe). If no one wants it will JP be parted out?
If so, can I get a tram; it would make a nice conversation piece. 🥱

Did Vail start to buy resorts in the east after poor snow years out west❓At this point we don't know.
 

BodeMiller1

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Further, if the previous owners were getting fraudulent loans is it safe to assume they were cooking the books? I'm guessing this is known. Remember the government official with the spaghetti flow chart. That was a great press conference.

It kind of sucks
 

BodeMiller1

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Thank you Bubba, you still got it...😇

by Timothy McQuiston, Vermont Business Magazine A Park City, Utah, resort company has offered to acquire Jay Peak Resort for $58 million. Jay Peak Receiver Michael Goldberg will accept this bid for Vermont’s northern-most ski resort unless a higher bid comes in over the next month. Goldberg announced the bid by Pacific Group Resorts Inc in a filing to the US District Court in Miami on Monday.

The Pacific Group bid is binding, according to Goldberg, regardless of any other bid.

“The time has come for the Receiver to sell the Jay Peak Resort. When the Receiver took over the Jay Peak Resort in April, 2016, it was on the verge of collapse having little money and making very little profit. In fact, the Receiver had many sleepless nights during the summer of 2016 wondering if he would be able to even make payroll.

“Now, after more than 6 years, the Jay Peak Resort is significantly more profitable and hundreds of jobs have been saved. The Receiver attributes this success to his top notch management team and the dedicated employees who work tirelessly to make Jay Peak one of the greatest ski resorts in the country.”

The “Ponzi-like” scheme that resulted in the conviction of resort owner Ariel Quiros, associate Bill Kelly and former president Bill Stenger was revealed on April 14, 2016, when federal agents raided the offices of Jay Peak and Burke Mountain resorts.

The fraud involved immigrant investors who provided some $200 million for the chance to receive a permanent “green card” for themselves and their families, plus a return on their investment through the federal EB-5 program.

It became the largest EB-5 fraud case in the US to date.

Burke Mountain is not part of the sale. Goldberg has been successful in resolving the EB-5 claims for the Jay Peak investments, but the Burke Mountain Hotel has not achieved the minimum requirements for the immigrant investors to receive their green cards.

The binding bid may seem modest given the previous investments, but Stowe Mountain Resort was acquired by Vail in 2017 for $41 million. While Stowe boasts more visitors, that deal did not include the Spruce Peak piece of the resort complex. The Jay Peak deal includes nearly all the real estate, including the popular water park, hotels, golf course, hockey rink and condos.

Pacific Group is a much smaller firm than Vail or the Aspen-related Alterra, which acquired Sugarbush in 2020. Those resort firms have properties scattered across North America.

Pacific Group owns and operates a handful of resorts in North America, the best known of which is probably Powderhorn Mountain Resort in Colorado. More locally it also owns Ragged Mountain in Danbury, NH.

The Jay Peak deal is binding on Pacific Group, but if Goldberg’s filing is accepted by the court, which it almost certainly will be, another bidder will have 30 days to put in its own binding bid.

If there are no other bidders, then Pacific Groups will acquire Jay Peak for that $58 million. The proceeds of the sale will be distributed to the Jay Peak EB-5 investors.

If there are other qualified bidders, an auction will ensue and the Goldberg will determine (with acceptance of the court) who ultimately owns the resort.

As Goldberg wrote in the August 1, 2022, court filing: “The Order appointing the Receiver vests title to all property of the Receivership Entities … in the Receiver. As such, the Receiver has the authority, subject to Court approval, to sell all Assets … constituting the Jay Peak Resort, subject to approval of the Court.

“Through this Motion, the Receiver seeks to sell the Jay Peak Resort to third party, Pacific Group Resorts, Inc (through an affiliate thereof), subject to a competitive bidding and auction process further detailed herein, for consideration totaling a minimum of Fifty-Eight Million Dollars ($58,000,000). The sale will be “free and clear” of liens, with liens attaching to sale proceeds, except as otherwise provided for in the Asset Purchase Agreement.”

“The Receiver believes the proposed sale to be in the best interest of the receivership estate as: (i)

The Jay Peak Resort has substantial carrying costs; (ii) the Receiver and his professionals, including Houlihan Lokey, have been actively marketing the Jay Peak Resort for sale for 4 years, and the Asset Purchase Agreement memorializes the highest and best offer received to date; and (iii) the sale will enable the Receiver to make further distribution to investors.”

Goldberg stated that other parties have expressed interest in purchasing the Jay Peak Resort over the past few years, however, only Pacific Group has been willing to submit a binding bid.

Goldberg said in his filing that he “is hopeful that perhaps another bidder will surface at the auction.”

Goldberg seeks to sell the Jay Peak Resort in a competitive public bidding and auction process wherein he may “solicit higher and better offers.”

“Should the Receiver receive Qualified Bids, the Receiver will hold an Auction via Zoom as provided for in the Bid Procedures. Absent receipt of a Qualified Bid constituting a higher and better offer, the Receiver may deem Buyer’s (Pacific Group’s) bid the highest or otherwise best offer, and will proceed with the transaction as contemplated by the APA, subject to final Court approval.”

A final hearing to consider approval of the sale of the Jay Peak Resort is scheduled for August 22, 2022, in US District Court in Miami.


 

2Planker

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how about that Ford stock?

on quite a recent tear along with the rest of the market the past month or so
Car stock aren't going anywhere fast... Stellantis maybe, but we'll have to wait and see.

Dumped the Porsche & MB stocks in 2019 for Tesla. No complaints !

As they said in the 90's -- "If you can't Eat it, Drink it, or Smoke it, then don't buy it..."
 
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