Big Burke announcement

[from_the_NEK]

I agree - outcome of this could be a lot worst than having the owners in place. Its not like there is a line of people looking to buy an underperforming ski resort.

And who knows what is going to end up happening at Jay as well? If both resorts end up on the block, are there enough buyers out there looking to buy not one but two ski resorts?

I could see Jay Peak being very attractive although very expensive.
Burke could be the bargain purchase but it would be surrounded with more uncertainty.

 

[thetrailboss]

I agree - outcome of this could be a lot worst than having the owners in place. Its not like there is a line of people looking to buy an underperforming ski resort.

Yeah, I have no idea what is going to happen now. Burke, unfortunately, has been here before. In 1989-1991 it was operated by a creditor bank. If history has any bearing, folks can expect things to just be on life support with minimal marketing. The lifts would be turning though.

 

[River19]

I have several portable drives, but they are primary and back ups for the thousands of photos I take (each RAW file is ~26MB).

Exactly, you are a professional photo dude....makes 100% sense.....if we can manage $5.6B worth of "stuff" with a laptop and <1GB of shared drives, Ary can manage a ski hill and an empty building with a laptop......just sayin.....

 

[from_the_NEK]

The "management" company appears to be mostly hotel oriented. I wonder what they know about running a ski resort*?

http://www.leisurehotel.com/services/management-services/

*I'm sure they know more than Q Jr :razz:

 

[mbedle]

This is what the management company does, according to their website:

Distressed Asset Management
Professional Receivership Services for Hotels, Resorts, Condos, Restaurants, Entertainment Venues, & Golf Courses

Leisure Hotels and Resorts understands the technical and legal processes that are involved when it comes to receiving a distressed property by a lender through foreclosure, bankruptcy, and negotiated transitional handovers. We have extensive experience in independent and branded hotel, resort and condo association receivership. Since the late 1980’s, Leisure managed a whole host distressed hotel assets from local, regional and national lending institutions as well from the Resolution Trust Corporation (RTC). We stabilize troubled assets; operate them in an efficient cost effective manner while providing the lender with a plan to best meet the needs to secure a sale in a realistic timeline that minimizes the financial loss.

In addition our nationally ranked hospitality brokerage division can also provide assistance during this transition phase. All of these services allow us to offer a one-stop shop during this crucial receivership / transition phase of the hotel asset.

Within 24 hours of a court ordered receivership appointment, Leisure Hotels will take over the asset and following process will be implemented

Receivership Takeover Process

Secure all assets including bank accounts, cash, and all property
Follow proper human resource procedures for all employees
Take care of all life safety issues
Ensure all local, state, and federal laws are followed
Follow all franchise policies and procedures
Execute all required reporting under court order
Make all necessary court appearances
Manage Asset in the most cost effective manor
Property walk through and assessment

 

[from_the_NEK]

^I just got to that page on their website. I think this means there is no one standing with the "Q" anymore.

 

[drjeff]

And who knows what is going to end up happening at Jay as well? If both resorts end up on the block, are there enough buyers out there looking to buy not one but two ski resorts?

I could see Jay Peak being very attractive although very expensive.
Burke could be the bargain purchase but it would be surrounded with more uncertainty.

Might be a "buy one, get one free..." kind of thing

Either that or a bunch of Burke Mountain Academy alums, who have gone on to bigger and better things, get together and put in a bargain basement deal for Burke.

All anyone can say right now is there's a huge amount of uncertainty, and it's likely going to take a long time for everything to be figured out, acted on, and likely fines/punishments/etc levied

 

[oldtimer]

Will he cover his head with a hoody when he has to do the perp walk- or put on the proud army officer stand tall look?

 

[VTKilarney]

Here are a couple of my thoughts:

1) Ary "showing up to work" is basically showing up to tell the management company how to turn on the lights and where the pens are kept. Ary won't be around for long.

2) The state's press conference is all about saving face. It looks like it's the SEC doing the heavy lifting here.

3) Installing a management company may be a good sign. This could be an indication that there is a purchaser in the wings and that the SEC wants to preserve the assets as much as possible.

 

[oldtimer]

Management company is S.O.P. when the SEC moves in. They cannot lockout the existing management team and then not have an operational asset. That said, they don't do this for shits and grins.

 

[from_the_NEK]

Burlington Free Press to Livestream the Press Conference at Noon.

The link is in the article.
http://www.burlingtonfreepress.com/...ficials-situation-unfolding-q-burke/83004948/

 

[VTKilarney]

The Free Press is live streaming the press conference.

 

[yeggous]

The Free Press is live streaming the press conference.

Good thing we have a popcorn machine at work!

 

[mbedle]

SEC Case Freezes Assets of Ski Resort Steeped in Fraudulent EB-5 Offerings
FOR IMMEDIATE RELEASE
2016-69
Washington D.C., April 14, 2016 — The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Vermont-based ski resort and related businesses allegedly misusing millions of dollars raised through investments solicited under the EB-5 Immigrant Investor Program. The SEC’s case was unsealed today in federal court in Miami, and the court has appointed a receiver over the companies to prevent any further spending of investor assets.
The SEC alleges that Ariel Quiros of Miami, William Stenger of Newport, Vt., and their companies made false statements and omitted key information while raising more than $350 million from investors to construct ski resort facilities and a biomedical research facility in Vermont. Investors were told they were investing in one of several projects connected to Jay Peak Inc., a ski resort operated by Quiros and Stenger, and their money would only be used to finance that specific project. Instead, in Ponzi-like fashion, money from investors in later projects was misappropriated to fund deficits in earlier projects. More than $200 million was allegedly used for other-than-stated purposes, including $50 million spent on Quiros’s personal expenses and in other ways never disclosed to investors.

According to the SEC’s complaint, Quiros improperly tapped investor funds for such things as the purchase of a luxury condominium, payment of his income taxes and other taxes unrelated to the investments, and acquisition of an unrelated ski resort.

“The alleged fraud ran the gamut from false statements to deceptive financial transactions to outright theft,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement. “As alleged in our complaint, the defendants diverted millions of EB-5 investor dollars to their own pockets, leaving little money for construction of the research facility investors were told would be built and thereby putting the investors’ funds and their immigration petitions in jeopardy.”

The SEC’s complaint charges Quiros, Stenger, Jay Peak, and a company owned by Quiros called Q Resorts Inc. as well as seven limited partnerships and their general partner companies with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Four other companies are named as relief defendants in the SEC’s complaint for the purpose of recovering investor funds transferred into their accounts. The SEC seeks preliminary and permanent injunctions, financial penalties, and disgorgement of ill-gotten gains plus interest. The agency also seeks conduct-based injunctive relief against Quiros and Stenger along with an officer-and-director bar against Quiros.

The SEC’s investigation was conducted by Brian Theophilus James, Trisha D. Sindler, Michelle Lama, and Mark Dee, and the case was supervised by Chedly C. Dumornay of the Miami Regional Office. The SEC’s litigation will be led by Christopher Martin and Robert K. Levenson of the Miami office. The SEC appreciates the assistance of the Office of the Vermont Attorney General and other authorities in Vermont.

 

[mbedle]

Holly shit!!!!!!

 

[vermonter44]

Damn

 

[from_the_NEK]

HOLY SHIT! It is as bad as it could have been. :-(

 

[farlep99]

For those hoping for a perp walk, keep in mind that SEC has no criminal authority. Typical punishments are fines and sanctions which could no doubt cripple a business. However, if it is determined that criminal activity is afoot in the course of an SEC investigation, referrals for prosecution to state and/or Feds can happen. This is why SEC investigations are almost always a 'coordinated effort' with a state

 

[mbedle]

Well - might be selling both resort to pay back 200 million plus interest. How much do you think Jay Peak is worth, going to say no where near what they will need to raise. LOL

 

[oldtimer]

think I will keep holding off on that pass purchase.