17 May 2017

SAM Magazine—Vernon, N.J., May 17, 2017—The owner of Mountain Creek, Mountain Creek Management LLC, is seeking Chapter 11 protection. The company hopes to restructure its debt while maintaining daily operations, including opening the Mountain Creek Waterpark next month.

In a statement, Mountain Creek CEO Jeff Koffman said the bankruptcy filing stems from "legacy debt we inherited from the property's former owners," specifically, about $26 million due to the Vernon Township Municipal Utilities Authority for potential use of the town's sewer system. That system was expanded a few years ago in anticipation of a major year-round development at Mountain Creek that has yet to occur.

That debt obligation stems from a 2012 agreement in which the resort's former principal owner, Gene Mulvihill, agreed to assume approximately 65 percent of the MUA's debt for the buildout of the township's sewer system.

"We remain committed to seeing Mountain Creek develop to its full potential with new hotels, new outdoor attractions and expanded residential homes," Koffman said in his statement. "Our vision to create a world class, four-season resort here in New Jersey is still our main objective and this move will put us in the best position to achieve that," he said.

In a press release, a Mountain Creek spokesperson indicated the filing would not affect existing operations at the resort and would help attract outside investment for planned ventures. The resort's waterpark is scheduled to open the weekend of June 10-11 and seven days a week starting June 22.

"The four-season resort, which offers gourmet restaurants, lodging and a variety of outdoor sports and activities, will continue to operate fully during the bankruptcy process," according to the press release.