Ruapehu life time pass holders to vote on future of company

Skiers on the Whakapapa ski field on Mt Ruapehu. Photo / Supplied

Ruapehu ski fields' approximately 16,000 life pass holders will vote on the beleaguered lift company's future.

Ruapehu Alpine Lifts Limited (RAL) went into voluntary administration last week after three years of disastrous ski seasons, brought on by Covid-19 and poor weather.

John Fisk and Richard Nacey, of PwC, were appointed voluntary administrators of RAL in an attempt to dig the company out of its debt problems.

Last year RAL lost nearly $6 million and its total debt climbed to over $30m.

In a letter life pass holders, PwC said Administrators were assessing the company's financial position and would develop proposals to submit to creditors.

The creditors will then decide the future of the company through a vote.

"As a Life Pass membership holder you are a contingent creditor of the Company, and therefore hold the right to attend and vote at the creditors meetings. For the purposes of voting at the first creditors meeting, the Administrators have allocated a contingent liability of the value of $1 to your Life Pass membership," PwC said.

"You should be aware that the Administrators may elect to estimate the amount of any creditor's claim that is for any reason uncertain. The administrators reserve all rights to further scrutinise claims for the purpose of assessing the value assigned to votes, a distribution or calling for updated claims to be filed."

As recently as 2017, a Ruapehu life pass cost $3950.

Life pass holders will be given the opportunity to vote in person at the first meeting of creditors, by form of proxy or a postal vote.

The first meeting of creditors will be held on Friday October 21 at 11am, concurrently at these locations:

• Whakapapa Ski Area, Top of Bruce Road, Mt Ruapehu, Manawatu-Wanganui 3989
• Level 27, PwC Tower, 15 Customs Street West, Auckland 1010
• Level 3, PwC Centre, 10 Waterloo Quay, Pipitea, Wellington 6011

RAL is continuing to trade on a "business as usual" basis while the administrators look to determine the most appropriate way forward to maximise recoveries for creditors, PwC said in its letter.

Founded in 1953, RAL employs 196 staff and owns and operates the Whakapapa and Tūroa ski areas.

However, the Tūroa ski area was forced to close its gates three weeks early in a season that has been hampered by a lack of snow - caused by rain and balmy temperatures - as New Zealand experiences its warmest winter on record for a third consecutive year.

The Covid-19 pandemic has also severely impacted the business as restrictions and closed borders took their toll.

"The Company has had a very difficult last three years, with the impact of Covid-19 restrictions, paired with poor weather this season, meaning that the business has been placed under significant cash flow pressure," Fisk, of PwC, said last week.