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OK given to market Sno Mountain resort


February 19. 2013 9:04PM
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SCRANTON ‚?? A federal bankruptcy judge has given the trustee overseeing the financially troubled Sno Mountain Ski Resort permission to begin marketing the resort for sale to satisfy more than $24 million in debt owed to creditors.


The order, issued Thursday, resolves a motion filed by DFM Realty, the recreational facility‚??s largest creditor, which had sought relief from a stay that was issued after the resort was forced into Chapter 11 bankruptcy in October.


Documents filed by Sno Mountain show it has $171,562 in assets compared with $24.2 million in debt. Of the debt, $14.7 million is held by secured creditors who have liens against the property, while $9.4 million is unsecured.


The documents show some of the largest debts are owed to DFM Realty, $8.9 million, and Department of Community and Economic Development, $4.4 million. It also owes various taxes to several entities, including the city of Scranton, $419,196; the IRS $407,434 and $946,623 in payroll, unemployment, withholding and sales taxes to the state.


Sno Mountain, which includes a ski resort and water park, was forced into bankruptcy after several investors filed an involuntary petition in an attempt to protect their claims.


The facility has not yet opened for skiing this year due to warm weather, according to a woman who answered the phone Friday. It has begun making snow and hopes to open around Dec. 20, the woman said.


The bankruptcy court ruling, issued by a judge in the U.S. District Bankruptcy Court for the Eastern District of Pennsylvania, authorizes the bankruptcy trustee to seek bids for the facility starting on or before March 1, 2013, with a sale to be completed by April 8.


Should the trustee fail to obtain a buyer, the stay issued that precluded DFM Realty from seeking to execute on its debt will be lifted, unless some other agreement is reached by the parties, the order says.




Sno Mountain, which includes a ski resort and water park, was forced into bankruptcy after several investors filed an involuntary petition in an attempt to protect their claims.






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