Friday, May 11, 2012

Financially Ailing Wolf Creek Resort Headed for the Auction Block

Although some chirpy optimists are claiming the recession is over, we say "tell that to the current Wolf Creek Resort owners, folks" 

While our friends at Ogden Valley Forum were the first local news source to break the story yesterday, both the Standard-Examiner and Deseret News are bringing up the rear and reporting this morning that Ogden Valley's Wolf Creek Utah Resort becomes the latest Utah casualty of the 2008-12 Great Recession:
Although some chirpy optimists are claiming the recession is over, we say: Tell that to the current Wolf Creek resort owners, who've been struggling without success to effectuate a voluntary "creditor workout" since their original 2010 Chapter 11 Bankruptcy filing.

While Wolf Creek insiders say this property is worth "somewhere between $27 million and $34 million,” it'll be interesting to find out whether it'll fetch anything close to that at auction, as the U.S. remains gripped by a continuing recessionary economy.

We'll be keeping a close eye on this folks, as this forced sale ought to provide a telling barometer of the current bedrock economic health of Utah's tourist industry... and that of the local and U.S. economies as well.

Comments, anyone?


Danny said...

The real estate is worth something, but I wonder if the ski resort makes money of if there is any way it could.

It will be interesting to see what it goes for.  The real estate could be worth a lot someday, but I'm guessing it is currently worth a lot less than the owners think it is worth, and that is their problem and always has been.

Bob Becker said...

Although some chirpy optimists are claiming the recession is over, we say: Tell that to the current Wolf Creek resort owners, who've been struggling without success to effectuate a voluntary "creditor workout" since their original Chapter 11 Bankruptcy filing in 2010. "

Ah... Rudi, a resort mired in debt unable to get all of its creditors to sign off on a single restructuring plan is hardly a measure of whether the nation is or is not still in recession.  Bad investments in projects carrying unsustainable debt happen in all economies, and creditors of bankrupt properties not agreeing on a single restructuring plan do too. 

rudizink said...

While the Wolf Creek Resort may indeed be an example of pre-recession "malinvestment," It'll still be interesting to see whether an auction of
this property can provide a current  "baseline" value, I think.  Even
more interesting will be finding out whether it can all be sold in one piece... or whether it can be sold at all.
Whatever happens, I believe the outcome will support reasonable inferences about
the health of the Utah tourist industry, and the general local and U.S.
economies as well.

Bob Becker said...

Or merely the market's take on the value of an over-built resort valley property in an area that expanded  w-a-a-a-y beyond what could be sustained for the Olys .  

rudizink said...

 Yep.  That's a possible inference too.

Ray said...

Perhaps an opportunity for an investor to scarf up both Wolf Creek and Powder Mtn. if the price was right...

Smaatguy said...

If you're talking about the Summit Series that is buying Powder, I think that is a good possibility....I think that there are "wolves" (no pun intended) circling the carcass here....should be interesting if it turns into a bidding war or a flop.   A complete buyout would be best for the Valley me thinks….

Smaatguy said...

The ski resort is likely the only thing making money....they did sell off the water company to the sewer company about a year ago I believe and that's a cash cow.

Smaatguy said...

One other thought...might be nice for the ski resort to be be broken out to a of the few ski resorts in the country that is affordable for learners and alot of locals alike.

rudizink said...

 Exaclty right, Ray. 

The Bankrupty sale of the Wolf Creek Corpus reveals that a diligant  buyer could make make rhis work ~ 


Smaatguy said...

yikes...could that mean another powderville attempt if they owned both?

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