Excerpt from: Ski Communities and New Developments
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| August 06, 2009 | | Montana ski resort faces foreclosure | The recent real estate troubles have been affecting luxury ski resort real estate, and now Moonlight Basin can be added to the list. Along with Tammarack ski resort in Idaho, which has been shut down, and Yellowstone Club in Big Sky, which has just emerged from bankruptcy, Moonlight Basin luxury ski resort is experiencing tough times -- and looking for buyers.
New West Bozeman describes the transaction that got Moonlight Basin ski resort into trouble:
Moonlight borrowed about $170 million from Lehman Bros. in 2007, and
the funds were used to buy out Poole’s two partners and continue
construction at the property. The investment bank collapsed last fall,
and at around the same time Moonlight began to experience a severe cash
squeeze due to the collapse of real estate sales. The resort did open
for ski operations last winter, and the first nine holes of the
spectacular Jack Nicklaus golf course have been completed. But it’s
been clear since the fall that Moonlight would not be able to continue to operate without a sale or a major cash infusion.
Loans are necessary for the operation of any major ski resort real estate development. However, the ability to repay them can be hampered by a number of factors. While Moonlight Basin ski resort is expected to remain open, it is unclear who will be operating it. Lehman itself is in trouble, and looking for ways to successfully exit its own bankruptcy.
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