Hermitage Cash Flow Shortage

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  • Brattleboro Reformer in an article from last week, says a tax sale is in the works for June
  • DrJeff said:

    his arrogance/ego has to at some point, has to be squashed with reality!!!!!

    Unfortunately, not necessarily.  I get the feeling this guy doesn't play by the rules.  And sometimes karma doesn't play by its rules.  

  • Big news in there is a couple paragraphs down. Barnes' attorney representing him and the club in the defamation lawsuit has asked the courts for the okay to no longer represent Jim. Is it possible that his personal financial picture is as bad as the clubs? That would not help the situation, but would explain a lot.
  • Sully said:

    Big news in there is a couple paragraphs down. Barnes' attorney representing him and the club in the defamation lawsuit has asked the courts for the okay to no longer represent Jim. Is it possible that his personal financial picture is as bad as the clubs? That would not help the situation, but would explain a lot.

    Not sure if it's his financial situation or ego that is the issue.

    Apparently he's been spotted a few times in the last few weeks, when it's not actually snowing in the Valley, driving around in his Bentley convertible, with the top down....

    If the club goes full liquidation bankruptcy, I've heard a few members insinuate that he'll be facing basically a class action lawsuit from roughly 600 members for breach of contract, in addition to all the other lawsuits already in the works.....

  • This guy sounds like a real peach.   One thing in his, uh, "defense"  -- maybe the convertible top is broken and he can't afford to fix it  :-??

  • I enjoyed looking up the people in the article who were suing and what they do for work. A townhome for >1 million, wowzir!
  • Yep.  I can't speak for everybody here.  All I can say is when someone creates a real estate holding company for a vacation condo, well, that's just something I'm not very familiar with.  Now if you want to talk about the search filters on Air BnB...

  • The bit about the Rolls being out is pretty interesting actually. It's very early to be pulling antiques out for a drive and it's barely kinda sorta warm enough for the top down. UNLESS you are going to sell soon(the market for convertibles always goes up in May) and want to take advantage of every last hour...
  • Maybe he had the top down to smoke a nice cigar.
  • I'll attach it later, but there's an article in the Deerfield Valley News today stating Berkshire Bank wants to foreclose on Monday and get the club into the hands of a receiver who was involved with Yellowstone Club.
  • Just read the article. Really hard news to see. It really sums up all the financial problems that have recently come to light, including tax payments and even utility payments.
  • Can we change the title of this thread seeing as we are FAR beyond just cash flow shortages. This thing is starting to snowball fast.
  • edited April 20
    Wow, $83k just in electric bills unpaid, and that is just the start. Sad.

    Very sad for the locals who are out jobs and/or owed contracted services payments. At least there are other games in town (unlike the folks in E Burke area) but still painful for them.
  • Wow, $83k just in electric bills unpaid, and that is just the start. Sad.


    Very sad for the locals who are out jobs and/or owed contracted services payments. At least there are other games in town (unlike the folks in E Burke area) but still painful for them.
    Didnt something happen with Mt Snow not allowing Hermitage employees skiing privilege due to some ongoing between the two areas? I hope the management at Snow doesn't have a thing like don't hire anyone with Haystack on there resume. When Intrawest took over Vernon Valley Great Gorge, for years the management of Mountain Creek did not like anyone from Hidden Valley up the street. If that is going on there, finding work for the folks dumped at Haystack will be a bigger challenge.
  • I remember reading something here on SJ about Mount Snow allowing employees to work at both places at the same time. Could of remembered that incorrectly.
  • mtsnow123 said:

    I remember reading something here on SJ about Mount Snow allowing employees to work at both places at the same time. Could of remembered that incorrectly.

    The missing word in your posting was NOT! Mount Snow would not hire bands (maybe others) who played/worked at the Hermitage.  Don't know if that was still the case.
  • mtsnow123 said:

    I remember reading something here on SJ about Mount Snow allowing employees to work at both places at the same time. Could of remembered that incorrectly.

    The missing word in your posting was NOT! Mount Snow would not hire bands (maybe others) who played/worked at the Hermitage.  Don't know if that was still the case.
    Their policy at the time was simple. Employees could work for Mount Snow OR the Hermitage. Didn't matter what the job description was....
  • Hopefully with the place really going up in flames the unwritten policy changes at Mount Snow because it absolutely was viewed as being a traitor if you went to the Hermitage.
  • DrJeff said:

    mtsnow123 said:

    I remember reading something here on SJ about Mount Snow allowing employees to work at both places at the same time. Could of remembered that incorrectly.

    The missing word in your posting was NOT! Mount Snow would not hire bands (maybe others) who played/worked at the Hermitage.  Don't know if that was still the case.
    Their policy at the time was simple. Employees could work for Mount Snow OR the Hermitage. Didn't matter what the job description was....
    Wow, that sounds, well, illegal, unless they have them sign a non-competition agreement or the like. 
  • People worked at both mountains this season.
  • Hermitage says it has financing offer

     

    The Hermitage Inn in West Dover.

    Zachary
    P. Stephens/Reformer

    ·        
    http://reformer.com/uploads/thumbnail/20180430-171521-HermitageSignT5-BW_68762.jpg

    Posted Monday, April 30,
    2018 5:15 pm

    By Chris Mays, Brattleboro Reformer

    NEWFANE — Officials at the
    Hermitage Club say an unidentified "financial company" is willing to
    provide the financially troubled resort a $26 million loan to pay off its
    foreclosed mortgage and debts and provide working capital.



    The potential funding was disclosed Friday in a supporting affidavit in Windham
    County Superior Court Civil Division, opposing a motion by Berkshire Bank to
    appoint a receiver for the Hermitage Club. The bank filed for foreclosure in
    February after the Hermitage failed to make payments on three loans totaling
    $17.1 million.



    In the filing, Hermitage Club officials disclosed that Wells Fargo Bank offered
    them a term sheet — a non-binding agreement setting forth business terms and
    conditions — but the identity of the actual lender was redacted in court
    documents. They said the potential infusion of cash renders the court
    appointment of a foreclosure receiver unnecessary.



    "A fully signed copy of the term sheet for a $26,000,000 loan is in our
    possession," attorneys from Fisher & Fisher Law Offices in
    Brattleboro, the firm representing the Hermitage, wrote in the affidavit
    supporting its objection to Berkshire Bank's emergency motion to appoint a
    receiver. "We stand committed to have the restructuring succeed."



    "[Redacted] 'Finance Company' is the potential name of the wholly owned
    Loan Company," the affidavit reads. "Currently the funds are held in
    escrow at Wells Fargo Bank under the trust name of [redacted]."



    Berkshire Bank filed for foreclosure in February after the Hermitage failed to
    make payments on three loans. Those properties included the company's private
    ski resort at Haystack Mountain, the Hermitage Inn, a golf course, Chamonix
    townhouses, the Snow Goose Inn, the Horizon Inn, the Doveberry Inn, second
    homes under construction, and other properties. The foreclosure complaint has
    35 liens from vendors and contractors for bills and claims the Hermitage could
    not pay.



    Mortgage agreements had given Berkshire Bank the right to seek the immediate
    appointment of a receiver. An emergency motion to do so was made on April 17.



    In its filing, The Hermitage provided a redacted document of the terms with the
    financial company that say "the existing first mortgage will be
    transferred to financial company." A closing date would be expected by the
    Hermitage no later than May 15.



    The financial company is willing to make the loan and "take a first
    mortgage on all assets associated with the company's business and membership
    ski and golf club" including all real estate, real property, development
    rights, contract rights, intellectual property and permitting rights and
    permits and approvals.



    "We do not believe we need to waste scarce cash in hiring an out-of-town
    receiver who will take at least 100 hours to get familiar with the assets of
    the Hermitage Club," attorneys for the Hermitage wrote. "We believe
    that protecting the assets with local, knowledgeable people, some who have
    built these assets from the ground up and have worked here 15 to 20 years, is a
    better solution and protects local jobs as well."



    The buildings and assets of the Hermitage Club are getting "full security
    tours with daily check points that are conducted by local employees that are
    part of a team reviewed" by interim company president Bob Rubin, according
    to the affidavit.



    "Every property has been fully secured and cleaned, and is not at risk
    from elements or other," attorneys representing the Hermitage Club wrote.
    On April 17, Berkshire Bank officials "performed a site visit and viewed
    the assets in their current state and found them to be in excellent
    order."



    Hermitage attorneys said Patricia Reinhardt, the company's restructuring
    officer, "continues to work with us to protect and oversee the finances as
    we work toward a successful restructuring."



    "Our employees are also protecting and readying the golf course including
    removing the freeze tarps on the greens to protect this valuable asset,"
    attorneys wrote. "The Club is maintaining its essential employees on staff
    in order to maintain the Club's assets."



    Reach staff writer Chris Mays at cmays@reformer.com, at @CMaysBR on Twitter
    and 802-254-2311, ext. 273.

     

  • So now a new company is being duped by Barnes?  When will this crazy sh&*show end?
  • It's Michael Cohen :P
  • edited May 2
    Can I quote myself here?   Except not totally positive at this point, key difference being that Big Gene paid his employees.

    This guy reminds me so much of Gene Mulvihill, and I mean that in a positive way.  Early 1990s he had a lot of stuff going against him but his drive and energy kept things moving forward.    When everything is crashing and disintegrating...put out a press release, declare success!   I love it.

     




  • marcski said:

    So now a new company is being duped by Barnes?  When will this crazy sh&*show end?

    Pretty sure the new company is composed of various members of their finance board, and that it will come out that Jim Barnes is no longer associated with any day to day club operations and/or promotions in this agreement.

    A 26 million dollar finance deal is a really small thing for many of their members who work in the financial sector when you think about it....
  • edited May 11
    DrJeff said:

    marcski said:

    So now a new company is being duped by Barnes?  When will this crazy sh&*show end?

    Pretty sure the new company is composed of various members of their finance board, and that it will come out that Jim Barnes is no longer associated with any day to day club operations and/or promotions in this agreement.

    A 26 million dollar finance deal is a really small thing for many of their members who work in the financial sector when you think about it....
    I hope you're right for the club members....Barnes is a ##### to the highest degree.
  • The Brattleboro Reformer article mentioned above was very interesting. It mentions Mr. Mark Greenberg. Is he the same Mark Greenberg that has run unsuccessfully for Congress a number of times in Connecticut?
  • edited May 11
    That article makes me shake my head so much. How can so many sketchy strange characters from CT can try to steal a buck out of this valley?! The guy couldn't pay 5 grand in condo fees, BUT HAS $26 MILLION FOR THE CLUB?! This is simple, grow a pair tell Barnes to SCREW OFF and take ALL his cronies and friends with him. If they don't I hope the whole town gets burned badly and left in the hook for every cent because it is their fault. At some point you have to stop being so stupid and naive. God this small town bull###t drives me nuts...


    http://www.reformer.com/stories/powderhorn-condo-facing-foreclosure-has-hermitage-ties,539153


    This is pretty interesting, looks like the condo construction you can see from Handle Rd, "Powderhorn Village" has also run out of cash and is being shut down. I always thought these were built for and as part of the Hermitage. What's a little more worrying here is the fact that the same guy owns some new pizza place in town, not looking good for that place if the owner and partners can't raise a million to avoid foreclosure on a multi-million dollar construction project.
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