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Ok..I'm gonna beat the Times here....Involuntary Chapter 11 Filed.


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Figured I'd beat the Times at their own game, but..like the title states, we, as in Sno Mountain, filed for Involuntary Chapter 11 Status on Monday night.

 

Now, from what I understand is this was initiated by the corporation that now owns Sno, to get out from under the cloud of all the debt.

 

The good news is, we are opening, again this is a Chapter 11, not a 7... so there is no problems with that..passes are still on sale, mountain staff is getting things done, our new terrain park manager is getting all that stuff up, repaired and ready..so..we're ok. It's just one more hurdle to jump over.

 

I know I'm starting to sound like a broken record, and honestly I kinda felt a little crushed by this especially after having a banner Summer season and overcoming all the old issues for the most part..and..once again we get kicked right before the season starts, so me being the voice for the mountain I have to once again re-assure everyone that we are ok.

 

But, that's my job.

 

I'm sure we will all see the "Sno is Doomed" stuff all over again, but like in the past..the guns will be blowing and the lifts spinning. In fact we have Stoketoberfest next weekend and the job fair the first weekend in November..and I'm happy to announce that Dominic Condusta will be running our Terrain Park this season.

 

I'm adding a link on the explanation of Involuntary Chapter 11 so you guys can read into it.

 

http://bankruptcy.lawyers.com/commercial-bankruptcy/Facing-Involuntary-Bankruptcy.html

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Wow... Every time we hear about bankruptcy or Sno having financial problems, but not really having financial problems, another one pops up... And this time it isn't we didn't pay the electric bill, or this is normal operating procedure and has been since new management took over, etc, its straight up bankruptcy... I realize that it's chapter 11 for restructuring, which is basically saying that we overleveraged ourselves and can't pay back the money we borrowed, and it's a win win for the entity restructuring because they basically get better credit terms, and will end up paying less off so that it isn't a total loss for them and the company extending the line of credit (I think I got the explanation generally correct?)... I guess it's better than chapter 7 which wouldn't allow the company to operate and all those jobs would be lost etc, but seriously, I think we are past trying to convince people that there aren't glaring financial issues...

 

I am glad Sno won't be joining NELSAP this year, but I hope this restructure allows it to stay viable for a couple more years at least... Thanks for the heads up KC... It's always tough to break the bad news... Hope it goes as well as it can...

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Hopefully they make their last season a good one. Anyone who hasn't been there lately should make a trip before it's all over.

I wonder if its that bad... Your have to imagine that if it comes to that, it will get picked up by somebody... Especially since its multi season now...

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So, I decided to pull the filings to see what is going on in this case. Basically and in non-legalese, the general manager of Sno was not running Sno prudently and was, in fact and as alleged, using Sno as his personal bank account--instead of paying bills, etc., he was, allegedly, using Sno's money as his own, paying bogus employees, paying himself, etc.--that sort of thing. Anyways, in an involuntary petition, the creditors force the company into bankruptcy. Here, the creditors are, amoung others, the investors (limited partners) of Sno who want to take control back of Sno to get rid of the present general manager. The creditors successfully petitioned the court to remove the general manager and to appoint an interim, professional trustee to run Sno, pay its bills, etc.

 

The point of all this is that I think that Sno could be successful and profitable with prudent management. Getting rid of the old general manager, having someone saavy appointed to run Sno, and having concerned investors (the creditors), along with the discharge of some debts, might be the best thing for Sno. I'm not that familiar with the L.P structure structure, but forcing bankruptcy might have been the only recourse the l limited partners had to get rid of the general partner. Just my opinion though--just a thought.

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......the general manager of Sno was not running Sno prudently and was, in fact and as alleged, using Sno as his personal bank account--instead of paying bills, etc., he was, allegedly, using Sno's money as his own, paying bogus employees, paying himself, etc.--that sort of thing....

 

sounds about right for that area. i hope they do find somebody new to run the place properly, would be a shame to lose that mtn.

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So, I decided to pull the filings to see what is going on in this case. Basically and in non-legalese, the general manager of Sno was not running Sno prudently and was, in fact and as alleged, using Sno as his personal bank account--instead of paying bills, etc., he was, allegedly, using Sno's money as his own, paying bogus employees, paying himself, etc.--that sort of thing. Anyways, in an involuntary petition, the creditors force the company into bankruptcy. Here, the creditors are, amoung others, the investors (limited partners) of Sno who want to take control back of Sno to get rid of the present general manager. The creditors successfully petitioned the court to remove the general manager and to appoint an interim, professional trustee to run Sno, pay its bills, etc.

 

The point of all this is that I think that Sno could be successful and profitable with prudent management. Getting rid of the old general manager, having someone saavy appointed to run Sno, and having concerned investors (the creditors), along with the discharge of some debts, might be the best thing for Sno. I'm not that familiar with the L.P structure structure, but forcing bankruptcy might have been the only recourse the l limited partners had to get rid of the general partner. Just my opinion though--just a thought.

 

Melissa...you have put down the wrong info here...this is why it's important to really know what is going on....the general manager has not been removed nor has he been in any way been ineffective in his post. Who has been removed is the General partner, (Dennis Carlson) effective yesterday. We now work with a trustee and have set forth our operations plan, and I'm pleased to say, our entire staff is intact and can't wait for the season to open.

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We have a lot of work to do, I grant you..and for the most part I wanted to stay clear here until all the facts came out. In reality the Times did a halfway decent job for once explaining thing. We all work hard up there, including the operations staff, and the Gm, but ultimitly we have to answer to the boss, in this case Carlson. But,...ah hell..I'm not gonna write a speech...I've steered all of you with the facts and I've never lied to anyone here, just presented the facts as I get them.

 

Just hang in there, we're opening, I just don't want to put out bad info or surmise on stuff. from the looks of the posts all of you seem to be supportive and hope things work out. They will...maybe we should have done this years ago...but, it's done now and we can move forward.

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Melissa...you have put down the wrong info here...this is why it's important to really know what is going on....the general manager has not been removed nor has he been in any way been ineffective in his post. Who has been removed is the General partner, (Dennis Carlson) effective yesterday. We now work with a trustee and have set forth our operations plan, and I'm pleased to say, our entire staff is intact and can't wait for the season to open.

 

I said general manager because I wasn't sure everyone understood the management structure of LPs--general versus limited partners, etc. Intent was not to mislead or be unclear.

 

Edit: Also just wanted to point out that I was referring to the general manager/partner of the LP, not of Sno as an operation.

Edited by Melissa
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Thanks Melissa...I kinda figured that out yesterday....Thanks for clearing it all up for everyone else. BTW...your idea of an area at the top of the Northface for a kind of a warming area, pavillion/picnic tables is taking shape!

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Thanks Melissa...I kinda figured that out yesterday....Thanks for clearing it all up for everyone else. BTW...your idea of an area at the top of the Northface for a kind of a warming area, pavillion/picnic tables is taking shape!

 

Great news. I think it will be super popular.

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Little too far north in PA for me, well for what it is at least. If I'm driving that far up I'm going to elk or pressing on to the catskills.

 

It is surprising they have money trouble though being that close to scranton. Do people in that city not ski or something??? If I lived right next to it I'm sure I'd call it my home mountain.

 

Best of luck to ya though.

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