Mountain Creek files Chapter 11

Editor's Note: This is a breaking news story and it will be updated as it develops

VERNON — Mountain Creek Resort Inc. filed for Chapter 11 Bankruptcy protection on Monday in New Jersey Bankruptcy Court.
“Today’s filing will allow us to deal with the legacy debt we inherited from the property’s former owners and attract new investment into the resort,” said Jeff Koffman, CEO of Mountain Creek Resort in a news release. “We remain committed to seeing Mountain Creek develop to its full potential with new hotels, new outdoor attractions and expanded residential homes. Our vision to create a world class, four-season resort here in New Jersey is still our main objective and this move will put us in the best position to achieve that.”
Subject to Court approval, the debtor-in-possession financing, along with the company’s cash from operations, is expected to provide ample support to its continuing business operations and minimize disruption throughout the season. Mountain Creek will maintain its staffing levels and continue without any layoffs.
Along with the filing, Mountain Creek filed a number of “first-day” motions with the Court to minimize the disruptions to any business operations and facilitate a smooth transition into chapter 11. Among other things, the motions request authorization to honor employee pay and benefits along with certain customer programs currently in place, such as seasonal pass holders, Triple Play cards and gift cards. Customer deposits for weddings and other events will also be honored.
Mountain Creek Resort, Inc. has retained Lowenstein Sandler as legal advisors, along with Getzler Heinrich LLC as financial advisor and Houlihan Lokey to assist with the valuation and restructuring of its balance sheet.