Ski Season in Doubt at Greek Peak

Virgil, NY - Financial woes have cast doubt on a 2012-13 ski and snowboard season at central New York State?s Greek Peak, near Cortland.



Facing a staggering $35 million debt to a failed Tennessee bank following construction of an indoor water park and other amenities including the resort?s Hope Lake Lodge, Greek Peak is facing an uncertain future as its owners struggle to secure additional loans. U.S. Senator Charles ?Chuck? Schumer (D-NY) held a press conference at the resort this morning, urging the Federal Deposit Insurance Corporation (FDIC) to expedite its review of Greek Peak?s $1.6 million loan request to the agency. Because the Tennessee Commerce Bank is currently in conservatorship, the FDIC must approve all new loans extended to Greek Peak and before granting a new loan request the agency must complete its review the resort?s financial health.
New financing is essential to ensure Greek Peak?s future, U.S. Senator Charles Schumer said in a press conference held on Monday at the central New York State ski and snowboard resort. (file photo: Greek Peak Resort)
?Due to the snowball effect of a poor ski season and the failure of its primary lender, Greek Peak Resort needs help bridging the gap between now and next ski season, which would avoid putting over 1,000 jobs at risk,? said Schumer. ?Greek Peak, a year-round tourist attraction for Central New York residents and beyond, hit hard times when last year?s lack of snowfall led to a slow ski season, typically the most profitable part of Greek Peak?s business. What?s more, this slow business was coupled with the failure of Greek Peak?s primary lender, which has caused a serious financial crunch at this Cortland County operation. That is why I?m urging the FDIC to expedite its review of this $1.6 million loan, so that once we are sure that Greek Peak?s financial house is in order, the resort will get the immediate lift it needs to make it to the upcoming ski season.?
Schumer was joined at this morning?s press conference by Cortland County Chamber of Commerce Executive Director Bob Haight, the owners of Greek Peak including President Al Kryger, and employees of the resort. The FDIC recently advanced the company $200,000 so the company can operate for a few weeks while the FDIC does due diligence to confirm the financial condition of the company.
While Schumer applauded the FDIC?s stop-gap measure, he stressed that a larger loan is essential to ensure Greek Peak?s ultimate survival.
?I am writing to urge you and your staff to complete a thorough but expedient review, and, consistent with your obligations, to leave no stone unturned in your efforts to keep Greek Peak a viable going concern and to preserve these important jobs in upstate New York,? Schumer wrote in his letter to acting FDIC chairman Martin J. Gruenberg.

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