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fishnski

Staying at Snowed Inn
Skier
Joined
Dec 27, 2018
Posts
482
I sure hope this is handled right..would hate to see this dragged out without any operations at the ski area for too long..a liquidation if possible seems to be the fastest way to a fresh start with a new owner..Im not to clear on this recievership deal...how does that work?
 

Nate Tobik

Booting up
Skier
Joined
Dec 19, 2018
Posts
8
In a chapter 11 there will be a debtors committee formed. Looks like the bank and the state will head this. They get a say in how assets are divided and sold to repay debts and obligations.

The judge will decide what debts can be reduce and what is eliminated.

If there is any equity left over after the assets are sold to settle claims then the original owners will retain that. In this case it doesn't appear like there is anything.

Next step once committees are formed and things progress is the judge will march down through every secured party and try to work something out.

Once debts are settled a reorganized company is formed with the debt holders becoming the equity holders. It's at this point where the thing will probably be sold.

Unless the Herz family is high up on the secured party list this is the end for them. It seems like they're tapped out and the only way to retain control is for them to own debt senior to everyone else, or for the debtors to determine that they're the best people to run this going forward.
 

skidrew

Getting off the lift
Skier
Joined
May 1, 2017
Posts
643
In a chapter 11 there will be a debtors committee formed. Looks like the bank and the state will head this. They get a say in how assets are divided and sold to repay debts and obligations.

The judge will decide what debts can be reduce and what is eliminated.

If there is any equity left over after the assets are sold to settle claims then the original owners will retain that. In this case it doesn't appear like there is anything.

Next step once committees are formed and things progress is the judge will march down through every secured party and try to work something out.

Once debts are settled a reorganized company is formed with the debt holders becoming the equity holders. It's at this point where the thing will probably be sold.

Unless the Herz family is high up on the secured party list this is the end for them. It seems like they're tapped out and the only way to retain control is for them to own debt senior to everyone else, or for the debtors to determine that they're the best people to run this going forward.

Shouldn't this be converted to a Chapter 7 bankruptcy pretty quickly? I.e., liquidation and pay off what you can. Chapter 11 is for reorganization, and it's not clear to me how the Herzes can reorganize enough to convince creditors they should be allowed to continue operating because they can restore profitability and pay back more to debtors than they could get now from a liquidation.
 

crgildart

Gravity Slave
Skier
Joined
Nov 12, 2015
Posts
16,324
Location
The Bull City
Weren't they selling multi season passes recently. And, how many passes for next season are other "creditors" now holding? Do they get a spot in line with the other creditors?
 

skidrew

Getting off the lift
Skier
Joined
May 1, 2017
Posts
643
Weren't they selling multi season passes recently. And, how many passes for next season are other "creditors" now holding? Do they get a spot in line with the other creditors?

Yes, but they'll be well back in the line.

Best bet would be to seek a chargeback from the credit card company . . .
 

skidrew

Getting off the lift
Skier
Joined
May 1, 2017
Posts
643
In that list...the government gets paid first, the rest scramble for crumbs.

Yep. Guessing at least some of the bank debt is secured by property, so they may stand a better chance than things like Sunbelt rentals and consulting companies.
 

Jonjon

Booting up
Skier
Joined
May 8, 2019
Posts
2
Location
Davis, WV
Might be wrong but I'm not so sure this is fallout from Timberline's current situation. Deerfield closed on the last day of October. The timing was for sure the fact that winter is no longer the high season for tourism in Canaan Valley. The former operators of Deerfield are planning a new eatery in the valley, stay tuned for more on that. There are some local investors preparing to re-open the restaurant at Deerfield. A new restaurant, The 912 Brew Pub opened in the old Blackwater Brewing property in Davis this month. People sell businesses for lots of reasons. Tucker County West Virginia ain't dead yet.

I agree that Timberline's current situation has had little to no affect on Davis/Thomas. Anyone who has been in Davis/Thomas on any given weekend, even during the traditionally slower months, should be able to attest to that. Here at Stumptown Ales, we have seen steady increases in business since we opened in August of 2015. I know that Hellbenders is as busy as they have ever been. The issue here is more related to finding capable employees to help run everything, without the owners being overwhelmed by having to do everything themselves. The businesses are doing great, its the owner burnout that might be tempting some to move on. It is good to see these other operations opening/coming back as the consumer stress on the current operations has reached a point where we can't handle all the customers. Those who have had long waits to be seated at Hellbenders or Siriannis, or who can barely fit in the door at Stumptown due to it being fully packed, have seen the results of this. If anything, Timberline's resurrection might compound this issue. The valley, however, could certainly use some help, and that would help curtail some of the stress on the businesses in town.
 

pipestem

Out on the slopes
Skier
Joined
Nov 8, 2018
Posts
618
$2.1M does not seem like a lot of debt for the scale of business that was supposed to be Timberline. I expected a lot more. They must have been running totally shoestring the last several years.. Now, about, what, $10M to reboot it ? That's going to be a task.
 
Thread Starter
TS
Dr. Bighair

Dr. Bighair

Dr. Style
Skier
Joined
Nov 9, 2018
Posts
78
So wonder why the CVPSD, the new receiver of the utility, is not listed as a creditor?? Below is an excerpt taken directly from one of the PSC documents. Affiliates = the business declaring chapter 11.

"Timberline Utilities failed to collect payment on water and sewer services provided to affiliates with arrearages increasing from $134,966 ordered to be repaid in the 2016 complaint cases to $225,067 as of October 31, 2018 (an increase of $90,101)"
 
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