Big Burke announcement

[VTKilarney]

Unfortunately I can't post a PDF as an image.

 

[halfpintvt]

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.

Can you tell me where I can find these motions? Is there a link that I can follow?

 

[VTKilarney]

Can you tell me where I can find these motions? Is there a link that I can follow?

There isn't a link that I can give you. They are available through the federal court's PACER system. Anyone can open an account, but it's ten cents per page to download documents. They waive the fees if you don't exceed $15 in a quarter.

 

[halfpintvt]

There isn't a link that I can give you. They are available through the federal court's PACER system. Anyone can open an account, but it's ten cents per page to download documents. They waive the fees if you don't exceed $15 in a quarter.

Thank you so much. I appreciate your help, I will set up an account.

 

[VTKilarney]

Here is a link to download the spreadsheet that the Receiver filed with the court:

https://filetea.me/t1sbq8fVV40T8CqTPXx4nrjiQ

 

[VTKilarney]

And here is a link to download the entire motion:

https://filetea.me/t1sso25ORGxRniFBIUkI1lMGg

 

[manhattanskier]

Reading the first few pages of this thread is incredible and scary.

 

[VTKilarney]

I just noticed footnote #3 of the Receiver's motion to access funds for Q Burke:
"While the accounts payable are still being studied, there may be over $1 million of trade payables . . . The Receiver will seek to defer those payables."

Look for "cash on delivery" to be the new normal at Q Burke.

 

[thetrailboss]

I just noticed footnote #3 of the Receiver's motion to access funds for Q Burke:
"While the accounts payable are still being studied, there may be over $1 million of trade payables . . . The Receiver will seek to defer those payables."

Look for "cash on delivery" to be the new normal at Q Burke.

I have heard from numerous folks that the mountain was in excess of $1 mill in the red (approximately)

 

[VTKilarney]

I have heard from numerous folks that the mountain in excess of $1 mill in the red (approximately)

That's a big hole to dig out of before the beginning of next ski season. The Receiver is seeking to defer these payables. Suppliers are going to expect cash up front for anything in the future.

The Receiver has his work cut out for him, that's for sure.

Oddly enough, Receivership may have avoided a bankruptcy.

 

[yeggous]

That's a big hole to dig out of before the beginning of next ski season. The Receiver is seeking to defer these payables. Suppliers are going to expect cash up front for anything in the future.

The Receiver has his work cut out for him, that's for sure.

Oddly enough, Receivership may have avoided a bankruptcy.

Yeah, but they do this for a living. This is why you bring in a receiver. They are used to cleaning up messes.

 

[VTKilarney]

Yeah, but they do this for a living. This is why you bring in a receiver. They are used to cleaning up messes.

Usually by selling the asset and wiping out creditors, no?

Maybe I'm just being cynical. They have Electric Mike to rely on. That man alone should be what's needed to turn things around. /sarcasm

 

[sull1102]

I just noticed footnote #3 of the Receiver's motion to access funds for Q Burke:
"While the accounts payable are still being studied, there may be over $1 million of trade payables . . . The Receiver will seek to defer those payables."

Look for "cash on delivery" to be the new normal at Q Burke.

Knowing this and after the general consensus hat or would be tough to open Burke next year, I'd say it's almost a lock at this point that Burke misses a season or two. That hotel won't open till 2018 I bet.

 

[yeggous]

Usually by selling the asset and wiping out creditors, no?

I'm not an expert in the matter. Let's not make any assumptions of who gets paid what from the sale of the mountain. Considering that it was purchased with misappropriated funds there is an entire chain of hurt here.

 

[thetrailboss]

Knowing this and after the general consensus hat or would be tough to open Burke next year, I'd say it's almost a lock at this point that Burke misses a season or two. That hotel won't open till 2018 I bet.

I highly doubt that. They would lose a lot of value to the assets if they do not open.

 

[VTKilarney]

I highly doubt that. They would lose a lot of value to the assets if they do not open.

The money has to come from somewhere. I suppose it's largely up to the EB-5 investors at this point, since that's the only pot of money that I am aware of.

 

[yeggous]

The money has to come from somewhere. I suppose it's largely up to the EB-5 investors at this point, since that's the only pot of money that I am aware of.

The receiver can take on debt. The argument goes that by taking on debt and keeping the lights on they maximize the value to the creditors. Should they not take on debt and shutter operations, then the resale value my drop by an even greater amount.

 

[VTKilarney]

The receiver can take on debt. The argument goes that by taking on debt and keeping the lights on they maximize the value to the creditors. Should they not take on debt and shutter operations, then the resale value my drop by an even greater amount.

Good point. I guess there would have to be one hell of a security interest, though.

 

[oldtimer]

Any investor who was reasonably risk tolerant would float much more than 1 million for a first one 2 chair lifts and 1 hotel-

 

[VTKilarney]

Another VTDigger article that is well worth a read.
http://vtdigger.org/2016/04/20/in-the-kingdom-the-ponzi-cleanup-crew-is-on-the-case/

The best quote:

Goldberg said he’s not in charge at Q Burke until the judge grants his motion. If it’s granted, Goldberg said, he will make a decision about who should run the place based on what’s in the business’s best interest. He did not say if Ary Quiros Jr. would be allowed to stay on.