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Putting an end to the Class action suit? At least the actual skiers get the money and not the lawyers.
How does this kind of thing work? Do they pay the big bucks for an Insurance policy to cover losses? That has to be a huge lump of money right?
No indication MTN bought an insurance policy to backstop this...you are right, it would cost way too much.
If it fails passholders will be unsecured creditors if/when MTN goes bankrupt. You are at the end of the line to be made whole.
While I still believe Vail at least got a backstop reinsurance policy, they just issued $500mm of debt (3x over subscribed) and received a 2 year grace on various covenants. Current liquidity is $1.2billion.