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The fat lady is singing:
“The action also lists as defendants, along with Barnes and the Hermitage, about 45 individuals, businesses, and government entities that have filed liens or writs of attachment against Hermitage Club properties totalling more than $9.7 million. The amount includes a $1.5 million writ filed by Reinhart Food Service, two $1 million writs filed by individuals for residential properties, and $1.2 million in liens filed by the Vermont Department of Taxes.”
Talking to some different members today at a race at Pico, they are expecting the doors to be locked in the next few days...that is some real spin.
I don't. Peaks has enough financial troubles as is that they don't need to bring on more debt. If Peaks were to buy anything, I'd think a Western property to diversify their portfolio and offer some insurance against bad NE winters would be the right play for them.Oh well. Hope Mt Snow buys it back.
That's not how it works if it goes bankrupt. You either get cents on the dollar with a Judge's approval and re-organize or you liquidate to the highest bidder. Either way, the amount of indebtedness has nothing to do with the sales price.I'd end the speculation of Mount Snow buying the Hermitage given the liens now via the bankruptcy filing. Add that 16 or so million onto the then millions to buy out the rest, and Peak would likely be spending North of 25 million to buy an overflow area.....
Kind of insane to think of the financial problems they're having with the prices they charge to join, etc. Crazy.
Pretty much everyone saw this coming and very few thought it would work though.
I've heard from many people that a few of their hedge fund manager members will float a loan to the club to keep it going....
I hope this would come out of their own pockets, but I'm sure they'll try to shift the credit risk to the funds' investors, who will never be any the wiser, I guess....
The lengths Jeff goes to in order to try to defend this club (it's management really) is mind boggling. The managements behavior has been quite literally criminal.