Greek Peak files for Chapter 11 bankruptcy
Fri, 03 Aug 2012 14:29:28 GMT —
Greek Peak Mountain Resort in Central New York has filed for Chapter 11 bankruptcy court protection.
The ski resort near Cortland has been unable to secure alternative financing after its primary lender,
Tennessee Commerce Bank
, was seized by federal regulators in January. The filing comes after a slow winter with little snow.
The resort struggled last winter like many other slopes in Central New York with a slow winter and needed a $1.6 million loan to keep operations running through to the winter.
Greek Peak will continue normal operations as it continues to reorganize under bankruptcy court protection.
U.S. Senator Charles Schumer was in the town of Virgil last month calling on the FDIC to make a quick ruling in the case. He wrote a letter to the FDIC chairman asking the group to fast track the request.
The resort is a critical component of the local economy, contributing more than $100 million every year. It is also one of the Top 5 employers in Cortland County employing more than 1,000 people during the winter.
(Information from the Associated Press was used in this report.)