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ATTORNEYS for the Rappahannock Ski Area say a petition for bankruptcy will be submitted today to U.S. District Court in Charlottesville. Although the ski area will be closed for this season, Winchester attorney Jim Largent Of the firm Largent, Anderson and Larrick, said Ski Area’s directors hope to reopen next year. The bankruptcy papers were filed under “Chapter 11,” a special type of bankruptcy law which forsees that the business may come out of debt after a certain period of time, while operating in the meantime.
Eric Adamson, a member of the Front Royal office of the Largent, Anderson and Larrick firm, says a “Chapter 11” permits the businesses filing for bankruptcy to take “a new lease on life.”
Largent said he submitted a plan to federal court which would allow for the ski area to pay all creditors over a period of five years. He said the plan has to be approved by 100% of the creditors as well as the court.
In September, Jim Moore, president of the operating firm in charge of the ski area, had told all creditors that the ski area would be closed this season. Although Moore avoided using the word “bankruptcy,” he told creditors at the September meeting that the ski area is carrying debts in excess of $600,000, some $112,000 of that “unsecured,” and the rest in investments forwarded by its .companion firm, Camelback of Pennsylvania, and in first, second and third mortgages.
MOORE has said that Rappahannock’s financial problems are by no means unique among ski areas. Last winter’s mild weather and the “energy crisis” led to 15 ski operation bankruptcies in the New England states, and
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