Many California residents spend a lot of time at ski resorts in the winter months, trying to take advantage of good snowfall by downhill skiing and snowboarding. However, in recent years ski resorts throughout the country have been facing tough times, as the moribund economy forces Americans to spend less on recreational activities. As a result, some ski resorts have had to turn to Chapter 11 bankruptcy in an attempt to survive until the economy recovers. Fortunately, some of these ski resorts are now coming out the other side of the bankruptcy process.
According to a recent report, one popular resort, West Mountain Ski Center, has completed all of the requirements of the company's bankruptcy filing with final approval from a bankruptcy judge being entered right around the time the resort opened for business this season. The good news was celebrated as the company looks to finalize all of the details of the bankruptcy filing on the heels of the company's proposed reorganization plan being approved.
When there is an economic downturn, certain businesses, like ski resorts, are more susceptible to shrinking profits. And although many company decision makers may believe that filing for bankruptcy will mean the end of the business, that isn't always the case with a Chapter 11 filing. Admittedly, there is usually some bad PR when a company is forced to file for bankruptcy, but after that initial negativity subsides and the company digs into the process of planning a reorganization and coming to terms with creditors, all of the hard work can pay off when final approval is in sight. Getting to that point is not easy, but for the company and its employees, considering the advantages of a Chapter 11 bankruptcy filing over simply closing the company may be a decision worth weighing.
Source: PostStar.com, "Ski center slaloms toward bankruptcy finish line," Scott Donnelly, Dec. 18, 2013