Jay Peak bombshell

[thetrailboss]

his face is very punchable...

"OK, now you've gotten my attention. No more Mr. Nice Guy. I'm cutting days that Crotched is open AND reducing grooming and snowmaking at Attitash and Wildcat! MU-HAHAHA!"

["Um, boss, we did that last year."]

 

[drjeff]

Might there be a link so we can watch the fun?

No link apparently for the public. It is apparently a closed auction limited to just the bidders and the folks running the auction

 

[jimmywilson69]

I hope no vail and altera is legit.

I also hop Boyne would reconsider as it would add a nice resort into their portfolio

 

[thetrailboss]

Just got this Email. Spoiler alert: no named buyer.

There’s a dissonance to writing a general update for the weekly 242 newsletter while waiting for word about the ownership transition, which should come more fully into focus later today. It’s a contrast that’s been our reality here for a while now - keeping the routine and day-to-day as high on our collective radars as we do plans for the future, not the least of which being the transition from Receivership to new ownership.



It’s an exciting transition, and luckily (?) we’ve had a fair amount of practice navigating change, without changing too much.

It helps that we’ve had the best possible team on our side – from employees to all our guests, homeowners to season passholders, in country folks to those that cross borders to be here, we’ve felt the support and encouragement from all of you, across all seasons, from Receivership through pandemic and back to "normal” (an identifier we’ve never really ascribed to but in this context offers some comfort).



So, we’ll ask you to indulge us while we share a rundown of our weekly marketing updates and at the same time promise to be in touch again soon (possibly later today) to let you know what we know about what’s next on our shared Raised Jay journey.

 

[drjeff]

Just got this Email. Spoiler alert: no named buyer.

So then maybe the hunch that it is an investor group, who typically doesn't operate ski areas as the buyer and they're shoring up the plans with an operator prior to the press release after the gavel dropped and the auctioneer announced that Jay had been sold, ends up being true. Either that or Steve Wright and his great crew at Jay are quickly putting together some witty marketing video to annouce the new owners later today

 

[thetrailboss]

So then maybe the hunch that it is an investor group, who typically doesn't operate ski areas as the buyer and they're shoring up the plans with an operator prior to the press release after the gavel dropped and the auctioneer announced that Jay had been sold, ends up being true. Either that or Steve Wright and his great crew at Jay are quickly putting together some witty marketing video to annouce the new owners later today

Yeah I doubt it. I think this was drafted pre-auction and sent out.

We will likely see a press release announcing the details.

 

[thetrailboss]

So.....has there been any white smoke coming out of the chimney of the Sky Haus Lodge?

 

[jimmywilson69]

I never thought about the Catholics starting to get in on the Ski Resort game!

 

[fbrissette]

So.....has there been any white smoke coming out of the chimney of the Sky Haus Lodge?

I would assume it will take a few days before the new owner is announced, I would also assume that it is a bit more complicated than an EBay auction, and that there is some paperwork to be done before everything is ready for an annoucement, But what do I know... They'll probably have apress release out a few minutes after I post this,

 

[urungus]

The bidding began on Wednesday morning at 11 a.m. starting at around $58 million and the interested buyers continued to bid at 15-minute intervals up until close to 5:30 p.m. Now, it’s a waiting game to find out who the winner is, and how much they will pay.

source: https://www.wcax.com/2022/09/07/jay-peak-auction-set-wednesday/

 

[drjeff]

The bidding began on Wednesday morning at 11 a.m. starting at around $58 million and the interested buyers continued to bid at 15-minute intervals up until close to 5:30 p.m. Now, it’s a waiting game to find out who the winner is, and how much they will pay.

source: https://www.wcax.com/2022/09/07/jay-peak-auction-set-wednesday/

If the bidding did indeed go up until 5:30, and the Storm Skiing Journal report of the minimum bid increment was 1.175 million, that would get the winning bid somewhere North of 85 million or so, if not more, depending on if bidding parties at times went in increments more than the minimum amount

 

[Keelhauled]

The initial bid increment was $1.175 million, after that it was $250k minimums.

 

[cdskier]

The initial bid increment was $1.175 million, after that it was $250k minimums.

Yea...not really sure why I've seen this incorrectly reported so many times. Seems like the initial increment had to be high enough to cover the break-up fee...but after that there was no reason for the incremental bids to be that high and reverted to a much lower 250K amount.

 

[jimmywilson69]

So this potentially went on all day, interesting

 

[thebigo]

The auction, which was closed to the public, started at 11 a.m. Wednesday and continued past 5 p.m.

“There’ll be more info available tomorrow,” Steven Wright, Jay Peak’s general manager, wrote in an email to VTDigger around 7 p.m..

A “final sale hearing” is set for Sept. 16 in federal court in Miami before Judge Darrin P. Gayles. That event will be open to the public.

After daylong auction, winning bidder for Jay Peak remains a mystery - VTDigger

Steven Wright, the general manager of Jay Peak Resort, said Wednesday night that more information about the Northeast Kingdom property’s future owner would be available on Thursday.

vtdigger.org

 

[mbedle]

As I read it, the starting price for the auction was either 58 million or if higher, the highest purchase price stated by one or more of the qualified bids. So if some other entity submitted a bid at say 80 million, that would have been the starting price during the auction. Also, the auction may have taking place between 11AM and 5:30PM, but that doesn't mean that the auction was active during that entire time period. The receiver had the right to adjourn the auction from time to time at their discretion. Its also interesting that the receiver was the one to decide when the auction was over and could chose who won based on the highest and best offer. Pacific did not have to participate in the auction, but if chose to, they could submit an offer at anytime during the auction. So to me, this auction does not sound like the typical going once, going twice, going three times type. As far as announcing the winning bid, I would also guess that it will be made by the receiver when he submits to the court the request for approval.

 

[thebigo]

Pacific Group Resorts Wins Jay Peak Auction

Park City based Pacific Group Resorts, Inc. placed the highest bid – $76 million – at an auction yesterday for Jay Peak Resort. Subject to court approval, Jay will join PGRI’s group of five s…

liftblog.com

 

[JPTracker]

The transaction is expected to close prior to the start of the 2022-23 ski season and there will be no immediate changes to season passes or Indy Pass participation for this season.

 

[mbedle]

Good to hear - can't wait to find out the amount.

 

[mbedle]

76 million.