Update: This post was citing an article by the Burlington Free Press which has since been changed. You can read there updated post here. According to the latest information it does not look like Jay Peak will need to cease operations despite comments printed earlier today. However, bankruptcy is a tricky thing and anything is possible.
Jay Peak Resort and Q Burke Hotel are close to being flat broke.
That realization came in the form of a declaration from attorney Michael Goldberg and is leaving many Vermonter’s wondering, how did we get here?
According to the Burlington Free Press, Goldberg is now operating as the receiver for the two frozen properties and has come to the conclusion that the two areas are short on capital to cover costs. In his declaration, the attorney says that future expenses will make upcoming operations extremely difficult if not impossible.
“In a declaration filed with the court on Friday, Goldberg said the resorts have very little cash on hand, “and numerous upcoming expenses that will quickly use up available cash and, if additional money is not obtained, force the Receiver to shut down operations at Jay Peak and eliminate any possibility of Q Burke opening.” – Burlington Free Press
He even went a step further to say that the situation is almost opposite to the one Ariel Quiros described in his testimony before the SEC. Currently, Quiros and his partner, Bill Stenger are being accused of running what many are calling a Ponzi scheme related to the Vermont ski area.
Earlier this month, Stenger and Quiros were accused of misusing nearly $200 million dollars worth of foreign investment.
Find the entire Burlington Free Press article here: Jay Peak could close; Q Burke may never open