Mountain Creek files for Bankruptcy

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MOUNTAIN CREEK
FILES FOR BANKRUPTCY

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.

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