It's now on credit watch with its senior lender, ANZ. An accountant would say it was no longer a going concern, Taylor said.
The proposed change to its constitution would entice new investors whose investment would reduce the debt - but some shareholders fear it would also change the company's philanthropic nature.
RAL had initially planned to hold a special general meeting on November 26, asking shareholders to create a new company but it withdrew from that and presented information instead. Shareholders now have several months to get informed before the vote at its AGM in May.
At that meeting they will be asked to change the company's structure so that new investors can make a profit. After that, a second meeting would be needed to approve any new investor, Taylor said.
RAL has 2356 shareholders and 14,339 life pass owners. It started in 1953, with a group of skiers banding together to build rope tows. Its constitution states no shareholder can make a profit - instead profit is invested back into assets on the mountain.
Most of the country's other ski fields were privately owned and their owners could make a profit, Taylor said.
After its co-operative-style beginning, RAL became a New Zealand listed public company. It is not listed on the stock market.
Building ski lifts was expensive, and in 2015 the company decided to invest $100m in upgrades, including the new Sky Waka gondola that doubles as a summer tourist attraction, Taylor said.
It wanted summer income to balance losses from ski seasons affected by eruptions and poor snow. It spent $55m on improvements at Whakapapa and planned a further $20m-$40m upgrade at Tūroa.
It borrowed from MBIE and other investors, such as Ngāti Tūwharetoa and Ruapehu District Council, who took the risk and expected to be repaid when visitor numbers increased.
Then in 2020 Covid-19 closed international borders and imposed lockdowns in New Zealand, cutting visitor numbers.
"The timing was poor," Taylor said.
RAL then looked for investors and found nearly 10 possible investor groups.
"None of them progressed to making an offer, and the lack of profit was a significant barrier."
In May, shareholders will be able to vote on a change to the company that would allow new investors - but not existing shareholders - to make a profit. It could be done without changing the company's basic purpose, Taylor said.
In the meantime, shareholders have several months to digest the information in RAL's November 26 update.
"We are encouraging people to look at it, discuss it, and give us feedback."
Taylor said he had heard that a number of shareholders preferred the traditional model of skiers providing the finance for upgrades.
Before the November 26 meeting, the Auckland shareholder Robert Eller and others sent the company a report analysing its 2020 and earlier financial statements, which Eller said used standard accounting terms.
The report showed it was making a reasonable and increasing profit, he said.
"The major problem seems to be the ANZ changing its loan from a long-term to a short-term loan. The obvious answer to that is finding a new bank, or returning to a long-term loan," Eller said.
Other options include crowdfunding, issuing new shares, and selling more life passes.
Eller said he had heard nothing back from the board about his report and would like more information.
RAL was hugely important to Ohakune, said the owner of the Ruapehu Bulletin, Robert Milne.
"We are lucky to have a few other industries - the pulp mill, market gardening and farming - and the summer tourism is increasing a lot. But for Ohakune, Tūroa especially is massive. It wouldn't be the same town without it."
A lot of people were confused by what had been said about RAL's situation, and shareholders that he knew wanted more detail, Milne said.
Taylor said the company's philanthropic model had allowed it to look well beyond profit.
"If it's just a business, it's a very risky business. All of us see it as more than that. There's the volume of employment, the bed nights and the deeper connection to the mountain."
