And so this thread can hit 10,000 posts that much sooner!
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Big Burke announcement
- Thread starter the original trailboss
- Start date
And so this thread can hit 10,000 posts that much sooner!
Not Sure
Well-known member
I think it lost a few hundred due to a database issue some time ago ?
VTKilarney
Well-known member
The receiver has filed a request with the court for authorization to loan up to $750,000 from one or more Receivership or Relief Defendants to Q Burke. This is to preserve Q Burke for the next 13 weeks so that it can be later operated or sold.
Some allegations in the motion:
- EB-5 money was used to purchase the resort.
- The Burke Mountain Operating Company regularly received funds from Quiros flowing through the Relief Defendants to fund its operating shortfalls. These transfers exceeded $5 million.
- Construction of the hotel wasn't completed until February, 2016.
- There are no funds available to operate the hotel.
- The receiver is filing a motion to expand the receivership to include Q Burke LP (the EB-5 company for the hotel)
- Stenger's attorney has no objection to this request. Quiros' attorney has been "unable to discuss" the request with Quiros, and, therefore, took no position on the request.
- The mountain bike park is budgeted to have $77,200 in revenues between now and the week ending 7/16/26.
- $70,000 is budgeted for revenue from "Developer Sales [Jack Dator]" with a note saying "closing pending end of April/early May." (This appears to be the mountain's cut of a Bear Path condo sale. Wanna guess if that closing will really happen now???? These purchasers might be breathing a huge sigh of relief.)
Some allegations in the motion:
- EB-5 money was used to purchase the resort.
- The Burke Mountain Operating Company regularly received funds from Quiros flowing through the Relief Defendants to fund its operating shortfalls. These transfers exceeded $5 million.
- Construction of the hotel wasn't completed until February, 2016.
- There are no funds available to operate the hotel.
- The receiver is filing a motion to expand the receivership to include Q Burke LP (the EB-5 company for the hotel)
- Stenger's attorney has no objection to this request. Quiros' attorney has been "unable to discuss" the request with Quiros, and, therefore, took no position on the request.
- The mountain bike park is budgeted to have $77,200 in revenues between now and the week ending 7/16/26.
- $70,000 is budgeted for revenue from "Developer Sales [Jack Dator]" with a note saying "closing pending end of April/early May." (This appears to be the mountain's cut of a Bear Path condo sale. Wanna guess if that closing will really happen now???? These purchasers might be breathing a huge sigh of relief.)
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halfpintvt
New member
Where did you find this information? I think PeakCM might object to the hotel going into receivership until they are paid.
The latest: http://www.burlingtonfreepress.com/.../19/ariel-quiros-unfreeze-my-assets/83257644/
I mean, it is ONLY $50 million that he needs.
I mean, it is ONLY $50 million that he needs.
VTKilarney
Well-known member
I've had a chance to look at another motion. This is a request to expand the receivership.
Some allegations in this motion that are of interest:
- The motion alleges that the Q Burke entities are owned and managed by Quiros AND Stenger.
- The hotel was built on land purchased with funds that were improperly diverted from an EB-5 offering.
- Funds pledged to the Receivership Entities were improperly commingled with the Q Burke entities.
- "Q Burke Entities and their investors have become yet another vehicle used by the Defendants to engage in a series of complicated and convoluted transactions aimed at carrying out the scheme described in the SEC's Complaint."
- The Q Burke entities would be unable to operate if the receivership is not expanded.
- The Receiver and the Vermont Attorney General's Office are fielding investor complaints.
- Q Burke Mountain Resort, LLC billed the Hotel LLC $571,653 for payroll and expenses incurred through December 26, 2015.
I've also had a chance to read Ariel Quiros' emergency motion to unfreeze assets.
Some highlights:
- The SEC conducted a three year investigation.
- "Literally, Quiros cannot purchase food or a cup of coffee..."
- Much of the alleged misconduct is outside of the five year statute of limitations.
- Quiros' net worth grew from $178 million as of 9/30/2014 to more than $200 million today.
- Jay Peak, Inc. was valued at approximately $100 million as of July, 2015.
Some allegations in this motion that are of interest:
- The motion alleges that the Q Burke entities are owned and managed by Quiros AND Stenger.
- The hotel was built on land purchased with funds that were improperly diverted from an EB-5 offering.
- Funds pledged to the Receivership Entities were improperly commingled with the Q Burke entities.
- "Q Burke Entities and their investors have become yet another vehicle used by the Defendants to engage in a series of complicated and convoluted transactions aimed at carrying out the scheme described in the SEC's Complaint."
- The Q Burke entities would be unable to operate if the receivership is not expanded.
- The Receiver and the Vermont Attorney General's Office are fielding investor complaints.
- Q Burke Mountain Resort, LLC billed the Hotel LLC $571,653 for payroll and expenses incurred through December 26, 2015.
I've also had a chance to read Ariel Quiros' emergency motion to unfreeze assets.
Some highlights:
- The SEC conducted a three year investigation.
- "Literally, Quiros cannot purchase food or a cup of coffee..."
- Much of the alleged misconduct is outside of the five year statute of limitations.
- Quiros' net worth grew from $178 million as of 9/30/2014 to more than $200 million today.
- Jay Peak, Inc. was valued at approximately $100 million as of July, 2015.
MEtoVTSkier
Active member
...and Jr didn't know any of this? Yeah right... :blink:
VTKilarney
Well-known member
If I am reading the spreadsheet correctly, it looks like Burke owes Lyndonville Electric $315,309. Part of the amount appears to be part of a payment plan for winter operations.
Daddy just gave him a Range Rover and a house. It was like Christmas.
MEtoVTSkier
Active member
For a non-operational hotel...
MEtoVTSkier
Active member
Who paid for the airplane and fuel for him to fly out of town to go "workout" at a non-local gym?? Which LLC was this an expense for?
From from what's been said about the house, he evidently couldn't be bothered caring for the yard. Says a lot about him and his "military" training.
That's an EB-5 investor or two.
Yes, same for the mountain. He does a good job blaming everyone else for it looking so bad. Is it that hard to put a fresh coat of paint on the J-Bar? He does not know of the saying, "the buck stops here."
VTKilarney
Well-known member
Funny that you mention the airplane. Remember how Quiros was going to manufacture Flight Design aircraft in Newport, Vermont? Flight Design filed for receivership in February. So much for that idea.
VTKilarney
Well-known member
One odd thing about the spreadsheet is that there is no revenue listed for season pass sales. There are so many LLC's that Quiros controls, that perhaps this explains it.
The spreadsheet is not at all sophisticated. For example, the payroll expense for the campground is merely an estimate at 20% of revenue. The same is true for mountain biking and events. You'd think that they would know what their actual staffing requirements are and budget accordingly, but apparently not.
I also noticed that their worker's comp insurance is in arrears to the tune of $45,000. There is also an entry for Willis Insurance that says, "disconnect notice pending." The amount owed is in excess of $75,000.
The spreadsheet is not at all sophisticated. For example, the payroll expense for the campground is merely an estimate at 20% of revenue. The same is true for mountain biking and events. You'd think that they would know what their actual staffing requirements are and budget accordingly, but apparently not.
I also noticed that their worker's comp insurance is in arrears to the tune of $45,000. There is also an entry for Willis Insurance that says, "disconnect notice pending." The amount owed is in excess of $75,000.
from_the_NEK
Active member
Article in today's Cal-Rec about the Leisure Resorts company that is running the mountains:
http://www.caledonianrecord.com/new...cle_0c626b4e-1371-5faf-b065-9d24babfffc1.html
This is the worst part of the article:
Ary is still running the place :angry: and it doesn't sound like the Leisure Resorts guys are likely to remove him any time soon.
http://www.caledonianrecord.com/new...cle_0c626b4e-1371-5faf-b065-9d24babfffc1.html
This is the worst part of the article:
Ary is still running the place :angry: and it doesn't sound like the Leisure Resorts guys are likely to remove him any time soon.
from_the_NEK
Active member
Do you think Ary actually wants to keep track of such things?
That would also make an additional case for firing almost everyone. If someone got hurt and the resort was not insured it could be HUGE $. Electric Mike probably has his own insurance.
I'm not following you. This doesn't sound out of the ordinary. Most hospitality businesses work on this model. You forecast revenue and then target labor costs based upon a set percentage of that revenue. All non-fixed costs are targeted as a percentage for that matter.
VTKilarney
Well-known member
You'd know better than I would. I found it odd for the campground, though. Don't they know what they need for staff?
I'd have to see the spreadsheet to see what exactly you're looking at.
Staffing needs are determined based on forecasted revenue. I'd imagine there's further documentation saying there's so many supervisors and line level associates at such and such wages.
A cover sheet for such a budget might only show forecasted revenue and what the labor percentage goal is.
If there's no documentation with more detail, then I'd agree with your original assessment.
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