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Cole Schotz Helps Creditors Traverse the Financial Distress of the East Coast Skiing Industry

Cole Schotz represented the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy cases of D.C. Development, LLC, et al. in the District of Maryland, and in Peak Resorts, Inc. et al. in the Northern District of New York. 

D.C. Development, LLC and its affiliates owned and operated the Wisp Ski Resort in Garrett County, MD.  Founded in 1955, Wisp is the leading resort area in Western Maryland with a 32-trail ski slope, mountain roller coaster, 2 championship golf courses, Hotel, rental homes, retail, marina, and 2,200 acres of master planned land for residential and vacation homes.  The cases involved $50 million to $100 million in assets including Maryland’s only ski resort, and approximately $50 million in liabilities.  The Debtors were the 6th largest employer in Garrett County, MD.  Cole Schotz effectively represented the Committee to protect the rights of the unsecured creditors while preserving the Debtors' assets and value as a going concern.  Cole Schotz's efforts contributed to the successful marketing and sale of the Debtors' assets under § 363 of the Bankruptcy Code, which generated $23.5 million for the ski resort assets, and $6.1 million for the Lodestone Golf Course assets, allowing funds to be set aside for distribution to the unsecured creditors, and the ski resort to continue operating as a going concern.  Gary H. Leibowitz, a member of the Bankruptcy & Restructuring, and Litigation departments, was the lead attorney for the Committee.

Similarly, Peak Resorts, Inc. owned and operated the Greek Peak Mountain Resort, a four season resort development located in Virgil, New York.  The resort is the largest day trip area in Central New York State, and currently has 31 slopes and trails with a base elevation of 1,250 feet, and vertical drop of approximately 900 feet.  In addition to skiing and snowboarding, there is a tubing center, terrain park, and a children’s learning center. There is also a Mountain Adventure Center with a corporate team building facility.  The Debtors owned approximately 889 acres of real estate, which included the ski area base, buildings, and conference center, and the Hope Lake Lodge & Cascades Indoor Water Park.  The cases involved approximately $20 million in assets and over $50 in liabilities. Cole Schotz's efforts representing the Committee assisted in the funding of debtor-in-possession financing to stabilize the businesses and preserve the assets, and the sale of the Debtors' assets which generated in excess of $5 million for the benefit of the creditors and estates and allowed the ski resort to continue operating as a going concern.  Gary H. Leibowitz, a member of the Bankruptcy & Restructuring, and Litigation departments, was the lead attorney for the Committee.

 

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