With its operator in voluntary administration the future of the Ruapehu ski field is in the government's hands, PwC's John Fisk says.
With its operator in voluntary administration the future of the Ruapehu ski field is in the government's hands, PwC's John Fisk says.
Beleaguered North Island ski field operator Ruapehu Alpine Lifts has less than a fortnight to secure government support or face liquidation, its voluntary administrator says.
In October, John Fisk of PwC was appointed as voluntary administrator by the company’s board in a bid to resolve crippling financial problems exacerbated bythree years of suppressed activity through the Covid-19 pandemic.
In a community meeting in Ohakune earlier this week, Fisk outlined that the company had $32 million in secured debt and more than $12m also owed to unsecured creditors including staff and 14,500 life pass holders.
At least $15m was needed to be raised to establish a new, sustainable, structure, Fisk told the meeting, adding that deferred maintenance also totalled $25m.
Cessation of activity on the mountain was likely to trigger up to $100m in remediation costs, and see the region lose a similar amount in annual economic activity and cost up to 1580 jobs, Fisk’s presentation said.
Owhango Community Board member Murray Wilson said in a social media post that Fisk had informed the audience that Cabinet had advised that the Government was unwilling to fund more than the $4m it had already advanced to fund the administration beyond Christmas.
PwC partner John Fisk was appointed as the voluntary administrator of Ruapehu Alpine Lifts in October.
Fisk told the Heraldthe end of the line had not yet been reached, but it was quickly approaching.
“Without government support then we’re really looking at liquidation, and we’d have to call a Watershed meeting right before Christmas. We’re right at the edge here,” he said.
Fisk has scheduled a Watershed meeting for December 16, where creditors will vote on the future of Ruapehu Alpine Lifts.
“There’s still discussion going on with the Government on where we take this. I’ll know more by the end of Monday next week and can probably give more informed and detailed comment then,” he said.
Voluntary Administrations occasionally have positive outcomes, with Fisk pointing to Waimea Contract Carriers, who managed to continue trading and paid out all its creditors after appointing administrators in 2015.
“The important thing we’re trying to do is find a solution that puts it in a position to keep going long term. There are great reasons to do that, not least the economic damage and costs if it were to fold,” Fisk said.
