Wintergreen Resort officials are considering several options to improve the resort's financial security, including selling all or part of the property.
Other options include a joint venture with another entity and re-capitalizing Wintergreen's balance sheet.
The Nelson County Times reports that vice president and chief financial officer Rob Sullivan described possible steps that could be taken in a statement released Monday.
The resort encountered financial problems earlier this year because of a mild winter, the loss of its $3 million line of credit with Bank of America and a tax credit dispute with the state.
Wintergreen asked its members for help and sent renewal notices for 2013 about four months earlier than usual. Sullivan says that effort raised about $4.1 million.
The resort also settled the tax credit dispute.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Information from: Nelson County Times.
Wintergreen Resort Statement
As previously reported by the media, like many ski and other
resort properties, Wintergreen Resort
operates in a challenging economic environment, which was exacerbated by historically warm temperatures
last winter. To address these challenges, Wintergreen Resort retained the
financial advisory firm of Alvarez & Marsal to assist it in evaluating a
number of different strategic options, which may include, among other options,
a potential sale of all or part of the resort, a joint venture with another
entity, a recapitalization of Wintergreen Resort's balance sheet, or some
combination of these transactions.
The response to the marketing efforts has been very positive,
as interested parties recognize that the Resort has a loyal and committed membership,
a first-class group of enthusiastic employees, and a singular four-season experience
to offer guests and members. The
management and Board of Wintergreen Resort are encouraged that a transaction
will be closed in the coming months to provide the Resort greater financial
security and capacity for growth in the future.
In addition, in April, 2012, Wintergreen settled the conservation
easement tax credit dispute with the Virginia Department of Taxation on
favorable and confidential terms. Under
the settlement documents, the Resort is required to keep confidential the terms
of the settlement and cannot therefore disclose those terms.
The operations of the Resort continue uninterrupted during
this process. To learn about the exciting
special events at the Resort in May, including Mother's Day Weekend (May 12-13)
and Memorial Day Weekend (May 25-28) and the inaugural Wintergreen Adventure
Challenge to be held on Saturday, June 30 and Sunday, July 1, please visit
www.wintergreenresort.com.
