Jay Peak Resort is running short of funds, and in response the court-appointed receiver is taking steps to shore up the ski area’s cash flow.
Michael Goldberg is seeking a line of credit because Jay Peak resort is in “an extremely tight cash situation.” In addition, Goldberg, who is managing the resort on behalf of defrauded investors, has asked a Miami federal court judge to authorize the use of $1.5 million from a state settlement to pay for operating expenses at the resort. The Miami attorney is also seeking a line of credit to cover payroll in the event of a “rainy day.” Another option is the sale of certain cell tower leases.
The U.S. Federal District Court in Miami appointed Goldberg to oversee Jay Peak on April 13, a day after the Securities and Exchange Commission brought charges against Bill Stenger and Ariel Quiros, who used EB-5 immigrant investor funds to expand the resort. The developers are accused of misusing $200 million.
Goldberg said in an interview that the resort typically relies on surplus monies from winter ski receipts to hold the resort over the off-season that runs from May to October. But this year, because of the fraud and lack of snow, Jay Peak didn’t have the $7 million to $8 million in cash it needed to adequately fund operations this summer. In addition, the resort needed $5 million in repairs to the tram, which ferries tourists to the top of Jay Peak.
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