Tap to Call - (877) 250-8242

Montana Ski & Golf Community Files for Chapter 7 Bankruptcy

October 26, 2011

By:

LonePeakLookout.com, a Montana newspaper, reported recently that Spanish Peaks, a private ski and golf community in the Big Sky, Montana, has filed for Chapter 7 bankruptcy protection. The club reportedly sent a letter to its members divulging its financial distress four days before filing the Chapter 7 petition with the court.

In the letter, it seems the resort owners recommended that guests make alternate arrangements for their visits to Big Sky, as the resort did not anticipate remaining open this skiing season. But apparently not everyone was well informed about the company’s plans: according to sources, employees of the club had anticipated continued work, knowing nothing about the financial problems until the bankruptcy petition was actually filed.

Court documents reveal that Spanish Peaks identified between $10 million and $50 million in assets and between $100 million and $500 million in debts in its Chapter 7 petition. Reports note that the club’s manager cited a weak real estate market and unsustainable operating losses as its primary reasons for filing.

Spanish Peaks will reportedly not remain open during the Chapter 7 bankruptcy proceedings. Rather, the court will be able to liquidate its assets to repay creditors some or all of the debts the club owes. Those creditors, it seems, include several Big Sky businesses, including Big Sky County Water, Big Sky Publishing, Big Sky Resort Area District, Big Sky Resort, High Country Paving, Kleen King, Walker Excavation, and others.

Other Troubled Area Resorts

While the Chapter 7 filing of Spanish Peaks may have taken workers off guard, it is not the first time a resort in Big Sky has faced financial troubles in recent years. In 2008, according to sources, Yellowstone Club, a ski and golf club situated directly next to Spanish Peaks, also filed for Chapter 7 bankruptcy.

And in 2009, it seems the nearby resort and real estate development Moonlight Basin also sought bankruptcy protection. But Moonlight Basin managed to reorganize under Chapter 11 bankruptcy , and is still operational today. Its financial troubles were sparked when its primary lender, Lehman Brothers, went under at the beginning of the economic downturn.

Back to Newspaper Home


Tap to Call - (877) 250-8242

PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.

FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.

If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.