Big Burke announcement

[thetrailboss]

http://vtdigger.org/2016/04/20/in-the-kingdom-the-ponzi-cleanup-crew-is-on-the-case/

This part is interesting:

Schneider said Stenger was at Q Burke Hotel when he and other officials arrived April 13 and that Stenger gave them access to the property.

Residents of Burke say they continue to see Ary Quiros Jr., Quiros’ son, at the resort. The younger Quiros, who managed the resort for his father, has a frosty relationship with locals, who have expressed concern that he still appears to be involved with Q Burke operations.

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.

 

[MEtoVTSkier]

There is a lot of good statements in that article about the lawyers...

In the short term, Goldberg hopes to keep Quiros and Stenger’s businesses running smoothly, while the long-term goal will be to sell them off and use that money to pay back the investors and other creditors.

Goldberg said it’s going to be “better than business as usual” at Jay Peak while he’s in charge. The bad winter was hard on the resort, but the management team from Kansas-based Leisure Hotels & Resorts has already found hundreds of thousands of dollars in operating efficiencies, he said.

In a motion filed in federal court Tuesday, Goldberg asked the judge to place both entities under his receivership.

Residents of Burke say they continue to see Ary Quiros Jr., Quiros’ son, at the resort. The younger Quiros, who managed the resort for his father, has a frosty relationship with locals, who have expressed concern that he still appears to be involved with Q Burke operations.

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.

Goldberg said he anticipates opening Q Burke Mountain Resort for the next ski season. The virtually completed hotel and conference center will open “probably after the summer,” in an effort to avoid opening during the off season, he said — provided the judge in Miami allows him to take charge.

Down the road, Goldberg said, he plans to sell both resorts and any other assets or properties placed under his control. Those sales will happen through a competitive bidding process similar to an auction, he said.

http://jaypeakreceivership.com/

 

[SIKSKIER]

apologize if this has already been posted.This is the website setup by Goldberg which will contain a lot of pertinent info going forward.
http://jaypeakreceivership.com/

 

[mbedle]

Did anyone see a transcript of Stenger's deposition?

 

[MEtoVTSkier]

Did anyone see a transcript of Stenger's deposition?

Handshake deal? Lol!

Stenger revealed in the deposition that he has a “handshake deal” with Quiros to own 20 percent of Jay Peak. He reportedly makes $170,000 a year as Jay Peak president.

I’ve not benefited personally at all and that was never my priority.”

Stenger told the SEC that each project account was kept separate, and that the only funds used to pay off past obligations from future projects were the developer fees they felt entitled to and other costs..

:roll:

 

[VTKilarney]

Did anyone see a transcript of Stenger's deposition?

I haven't. I'm surprised that VTDigger hasn't posted it. It appears as if they have a copy and they are pretty good about posting their documents.

I'm confused by the latest VTDigger article - and in particular about the statements concerning Ary Jr. I thought that the Receiver had control of the ski area, but not the hotel. If they have control of the ski area, why can't they decide whether or not they want to keep Ary Jr. on staff? The article makes it sound like they still need the court to give them control.

 

[epic]

It's good to see that they have already talked to BMA and KTA.

 

[DoublePlanker]

It's good to see that they have already talked to BMA and KTA.

“We look forward to working with them, because our interests are aligned,” -- Goldberg

I believe Ary will be out.

 

[mbedle]

I haven't. I'm surprised that VTDigger hasn't posted it. It appears as if they have a copy and they are pretty good about posting their documents.

I'm confused by the latest VTDigger article - and in particular about the statements concerning Ary Jr. I thought that the Receiver had control of the ski area, but not the hotel. If they have control of the ski area, why can't they decide whether or not they want to keep Ary Jr. on staff? The article makes it sound like they still need the court to give them control.

I think the problem is with the naming of each entity. The do have receivership of Q Burke Mountain Resort, LLC, but not Q Burke Mountain Resort, Q Burke Hotel and Conference Center and Q Burke Mountain Resort GP Services, LLC. I am not sure what the difference is with Q Burke Mountain Resort, LLC and Q Burke Mountain Resort. I am thinking that might have been a mistake. If you look at the Affidavit of Sonnet Kapila, one of the exhibits shows the different businesses associated with Q Burke.

If you can't see the exhibit is basically states that Quiros owns Q Burke Mountain Resort, LLC, which owns Burke 2000 LLC, which owns Burke Mountain Operating Company, Which owns Burke Mountain Water Company and Burke Mountain Road Management Company. It also shows Quiros owns Q Burke Mountain Resort GP Services, LLC and combined with the EB-5 limited Partners, they own Q Burke Mountain Resort Hotel and Conference Center LP. It also shows that Burke Mountain Operating Company operates the hotel.

 

[mbedle]

One other thing that I was thinking is what is the possibility of Q Burke being bought when it goes to sale in an auction. It would seem to me that with so many ski areas potentially up for sale in the northeast, that would seem really slim. Thinking potentially Jay Peak, Saddleback, Magic and Q Burke could all be on the market in the next couple of years.

 

[VTKilarney]

One other thing that I was thinking is what is the possibility of Q Burke being bought when it goes to sale in an auction. It would seem to me that with so many ski areas potentially up for sale in the northeast, that would seem really slim. Thinking potentially Jay Peak, Saddleback, Magic and Q Burke could all be on the market in the next couple of years.

I think that the hotel makes Burke more marketable than Magic or Saddleback. The only catch is that nobody in their right mind is going to pay $55 million for the hotel, which is about what the investors have into it. The hotel is going to go for a serious discount.

 

[yeggous]

I think that the hotel makes Burke more marketable than Magic or Saddleback. The only catch is that nobody in their right mind is going to pay $55 million for the hotel, which is about what the investors have into it. The hotel is going to go for a serious discount.

Yes, unlike Magic and Saddleback, Burke also has two detachable lifts. And a reasonable proposition for profitable summer operation via a partnership with Kingdom Trails.

 

[from_the_NEK]

If you can't see the exhibit is basically states that Quiros owns Q Burke Mountain Resort, LLC, which owns Burke 2000 LLC, which owns Burke Mountain Operating Company, Which owns Burke Mountain Water Company and Burke Mountain Road Management Company. It also shows Quiros owns Q Burke Mountain Resort GP Services, LLC and combined with the EB-5 limited Partners, they own Q Burke Mountain Resort Hotel and Conference Center LP. It also shows that Burke Mountain Operating Company operates the hotel.

 

[freeski]

What if Q&S Had deposited the anticipated fees into separate accounts for each EB-5 project as investments came in. Then transferred the fees to private accounts as progress was made on the projects? Is this what they're arguing they intended although the accounting was messed up by comingling funds? If money was earned they could invest it in whatever project they wanted or buy a condo. It will be interesting to see how it plays out.

 

[mbedle]

But there is always a potential to have the same thing that happened at Ascutney, with the hotel not being the same business as the ski area. Also, I am not sure that the hotel will be considered an asset to selling the resort. Lets just throw a number out there of a potential sale for 50 million. That is for a ski resort that has a somewhat limited vertical and expansion capabilities, and a skier base of 75K (excluding this past season). Now compare that to Jay Peak with a potential sale of 100 million with multiple hotels, waterpark, golf coarse, and a good mountain with better snow. Combined that with a skier base of, I think I read somewhere, 400K and much better snow. If you look at Saddleback and Magic, they fill the niche market for someone not looking to spend 10's of million of dollars to get a ski resort. I think saddleback is around 12 million and Magic would be maybe 3-5 million, depending on if the land gets sold with it. I would put the costs for Jay Peak and Q Burke in the same bucket for being sold to a rather large organization that can handle the price tags. What are the chances of finding one (unlikely) or two companies looking to spend that kind of money? When both of these do go to auction it will be really interesting to see what they end up getting for them.

 

[MEtoVTSkier]

One other thing that I was thinking is what is the possibility of Q Burke being bought when it goes to sale in an auction. It would seem to me that with so many ski areas potentially up for sale in the northeast, that would seem really slim. Thinking potentially Jay Peak, Saddleback, Magic and Q Burke could all be on the market in the next couple of years.

Along with the CNL holdings...

 

[tumbler]

Along with the CNL holdings...

Les Otten on line 1....

 

[mbedle]

Les Otten on line 1....

lol

 

[mbedle]

Along with the CNL holdings...

And yes, I forgot about that group to.

 

[thetrailboss]

Along with the CNL holdings...

Yeah, CNL is getting out of the game....