Greek Peak files for bankruptcy protection

VIRGIL  —  Greek Peak Mountain Resort is seeking Chapter 11 bankruptcy protection as it continues its search for a lender to replace the shuttered Tennessee Commerce Bank.

The resort filed for voluntary bankruptcy Aug. 2. It has been unsuccessfully attempting to secure a new lender since federal regulators shut down Tennessee Commerce Bank of Nashville at the end of January.

Greek Peak expects to continue its normal business operations during the bankruptcy. It does not plan any immediate changes in staffing. The Federal Deposit Insurance Corp., which took over the resort’s loans after closing Tennessee Commerce Bank, will provide financing through a debtor-in-possession arrangement.

“I want you to know that we have worked as hard as possible to resolve this issue and will continue to pursue a resolution,” Greek Peak President Al Kryger said in a news release. “With the protection afforded under Chapter 11, a successful reorganization can be achieved, enabling Greek Peak to emerge from this process as a stronger and more vibrant resort.”

Greek Peak anticipates exiting bankruptcy by the ski season, it said in the release.

In 2008, Tennessee Commerce Bank provided Greek Peak with a $10 million loan for the construction of an indoor water park. It was part of a consortium of lenders that provided a $33 million package of loans to expand the resort.

The resort has 32 ski trails, six aerial lifts, two surface lifts, a beginners’ slope, and three terrain parks. It also includes the 106-unit Hope Lake Lodge, the 5,500-square-foot Waterfalls Spa, and the 41,000-square-foot Cascades Indoor Waterpark. In addition, Greek Peak completed work on an Adventure Center in July 2011.

Contact Seltzer at rseltzer@cnybj.com