Subject to bankruptcy court approval, Moonlight Basin and Lehman Brothers Holdings Inc. (“LBHI” or “Lehman”) announced last week an agreement has been reached that will result in the sale of substantially all of Moonlight Basin’s assets to an affiliate of LBHI under Moonlight Basin’s chapter 11 plan of reorganization and the dismissal of all claims in the adversary proceeding between Lehman and Moonlight Basin. Completion of the transaction, which is expected over the course of the next several months, will facilitate Moonlight Basin’s emergence from chapter 11. Under the proposed plan, Lehman will supply funds sufficient to satisfy in full the claims of Moonlight Basin’s administrative creditors and provide a recovery for Moonlight Basin’s unsecured creditors.
“We are delighted to have reached a settlement with Moonlight Basin and to move toward ensuring the long-term success of the Resort,” said Phil Cyburt, managing director at Alvarez & Marsal, the professional services firm that is overseeing LBHI’s real estate asset management.
Since 2007, Lehman has been funding Moonlight’s operations, which include ski, golf and lodging. In 2009, Lehman put in place a debtor-in-possession (DIP) credit facility to continue funding operations during Moonlight’s chapter 11 bankruptcy. When Lehman takes ownership, anticipated to occur later this year, Lehman plans to continue operating the resort and to open for the 2011 ski season on schedule.
“For more than three years, Lehman has focused resources to maintain the operations and integrity of the Resort,” said Cyburt. “Our commitment to the property has not wavered and remains aligned with supporting the local economy and community.”
The Moonlight team will continue to manage operations of the Resort.
“This agreement further ensures Moonlight will remain financially stable with continued long-term operations,” said Russ McElyea, Chief Operating Officer for Moonlight Basin. “Our summer and winter programs will continue to deliver outstanding experiences for our guests. Moonlight Basin is an integral part of the Big Sky Community, and this agreement will deliver a positive outcome for our employees, vendors, guests and for the community as a whole.”