Monthly Archives: November 2011

Spanish Peaks’ liquidation process coming to spotlight

Water, vehicles in question

By Taylor Anderson

Big Sky Weekly Assistant Editor

Many questions have been raised during the first month after Spanish Peaks closed its doors and its parent company filed for Chapter 7 bankruptcy.

Now under the spotlight is the liquidation process of all the clubs’ assets.

A Wall Street Journal article in November announced the former club for the rich would begin auctioning off the 63 vehicles Spanish Peaks owned when it closed.

The club has just $29,000 in cash, the article reported the bankruptcy trustee as saying. The trustee, it said, cited harsh winters as reasons to ramp up liquidation of the club’s assets as part of the Chapter 7 process.

Early reports of the debt-to-asset ratio listed, at most, a 10–1 ratio, and a list of creditors between 100 and 199.

During the sell off, the club’s water system will be among the assets in question. At a November meeting, the Big Sky Water and Sewer District examined what would happen to the water system, which is overseen by John Olson, one of five employees remaining at the club. The board recognized the system is at risk of damage during the winter.

The district bills Spanish Peaks customers but doesn’t run the drinking water system. It does run sewage through a pipe that travels from the club to ponds in the meadow.

The water infrastructure at the club is valued around $8,000,000 and could be sold off at a depreciated price as part of the liquidation process.

It’s unclear, however, if Spanish Peaks would continue running the water system until a potential sale of the entire resort, in which case the water could go with it, as well. The club could also choose to sell the water to a private, for-profit company.

Spanish Peaks Holdings II bankruptcy trustee in New Jersey, Charles M. Forman, didn’t return calls to the Big Sky Weekly to answer questions about the liquidation process.

Check explorebigsky.com/chapter7 for daily updates on the liquidation process.

Taylor@theoutlawpartners.com

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Big Sky LIFT takes off, slowly

Money waiting for former Spanish Peaks employees

Taylor Anderson

Big Sky Weekly Assistant Editor

After about a month of fundraising efforts for the revamped Big Sky LIFT program to give money to laid off Spanish Peaks employees, officials are finding applicants slow to come out of the woodwork.

The program, aimed at providing former Spanish Peaks employees with aid this winter, has far more money than it can provide to applicants, but it’s early yet.

Grants were given out in mid-November to the first (and only) five applicants, who received a total of $8,300, an average of $1,660.

The Montana Community Foundation out of Helena runs the program, and had collected $65,000 as of Nov. 30, according to Nicole Rush of MTCF.

“We haven’t received as many as we’d like but I think we’ll see more” as the holidays near, Rush said.

The program was first started in 2009 to assist employees in the wake of the Yellowstone Club’s Chapter 11 bankruptcy filing, and was resurrected after Spanish Peaks closed and its parent company filed Chapter 7.

“The sentiment I’d like to get across on this is hopefully we get more people to apply,” said John Haas, one of the coordinators of the program.

Haas said the application process is easy, and that so far, Spanish Peaks members have donated all the money available.

“There’s this outpour of generosity by the members trying to give love out that was given by the employees in the past,” he said.

The money sits in a bank account if the funds aren’t given to Spanish Peaks employees, and would possibly open up to everyone in Big Sky who’s been effected by the bankruptcy or recession in general, Rush said.

“It will definitely be spent in Big Sky in one way or another. That’s its purpose.”

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Jamie Pierre, professional skier, dies in Utah avalanche

The Salt Lake Tribune reported today that professional skier Jamie Pierre has died in a Utah avalanche.

Pierre, 38, was skiing when an avalanche swept him off rocky terrain. He was dead when rescuers reached him.

Pierre, who lived 18 years in Utah, moved to Big Sky, Mont. last summer and was set to become Moonlight Basin’s ambassador rider this winter. He was also going to participate in an avalanche safety campaign in Big Sky, and work some with Big Sky Resort.

He was most known for his world record 255-foot cliff jump on the backside of Grand Targhee Resort.

Pierre is survived by his wife and two children.

(Follow Taylor on Twitter at @TaylorWAnderson)

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Snow hits Big Sky, MT, Nov. 12

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Canceling the inevitable

Keystone XL oil pipeline delayed

By Nick Engelfried

Tandersonian Columnist

In Montana and throughout the nation, environmental activists and their allies are celebrating a hard-earned victory.

After months of work, more than a thousand peaceful arrests, and a rally that brought thousands of people to the nation’s capital, the Keystone XL tar sands oil pipeline has been dealt a major setback, as politicians decided to put a decision on hold for further review.

If built, the 1,700 mile long Keystone XL pipeline would stretch from the Alberta to Texas. Along the way it would cross through eastern Montana, slicing across the property of dozens of private landowners. Though Gov. Brian Schweitzer supports the pipeline, affected landowners have expressed worries about safety.

In September, 34 Montanans whose property sits in the pipeline path signed a letter to the Montana Department of Environmental Quality, asking that an oil spill response plan be made available. The landowners pointed to the risk a pipeline rupture would pose to nearby communities, and emphasized the need for emergency response personnel to be fully prepared for an oil spill.

Public officials in Nebraska, including Republican Gov. Dave Heineman, have urged the pipeline be re-routed to avoid the sensitive Ogallala aquifer. Environmental activists across the country also made stopping Keystone XL a priority, because the pipeline would solidify U.S. dependence on a particularly dirty form of oil.

During two weeks in late August and early September, more than 1,000 people were arrested in front of the White House as part of a protest against the pipeline. Montana actress Margot Kidder was among several celebrities arrested.

Now the work of Kidder and thousands of others is paying off.

On Nov. 10, the U.S. State Department announced a delay in the Keystone XL permitting process. The project backer, Calgary-based TransCanada, is now required to draw up a new route for the pipeline, which will undergo scrutiny from the State Department.  Because the pipeline crosses a national border, they must decide if it’s in the country’s national interest before Keystone XL can move forward.

The State Department’s announcement came days after thousands of people gathered in Washington, DC to circle the White House and demand that the Obama administration reject the pipeline. The project, which once seemed on track for approval by the end of the year, won’t make it through the review process until late 2012.

The long-term implications for Keystone XL could be even more serious. The delay before construction, combined with uncertainty of the State Department approving the pipeline, could nix the project.

This year’s ExxonMobil oil spill in the Yellowstone River shined a spotlight on risks inherent in transporting oil through pipelines. The spill, caused by a pipeline rupture, polluted more than 150 miles of riverbank with residue that hasn’t been completely cleaned up. A rupture in Keystone XL could be even more disastrous; the proposed pipeline would be 36 inches wide, three times the diameter of the pipeline involved in the Yellowstone spill.

Though Keystone XL is not dead yet, for the moment Montana landowners and others affected by the project have been granted a temporary respite. Meanwhile Keystone has been dealt a major blow—one that could eventually turn out to be the pipeline’s undoing.

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