Ruapehu Alpine Lifts is seeking more government support as liquidators struggle to sell the business as a going concern. Photo / Stuart Munro
Ruapehu Alpine Lifts is seeking more government support as liquidators struggle to sell the business as a going concern. Photo / Stuart Munro
Despite heavy snowfall and what administrators describe as an “incredible” ski season, troubled North Island skiifield operator Ruapehu Alpine Lifts (RAL) is sweating on another application to Cabinet for funds, seeking time to find new owners and save the tourism business.
PwC partner John Fisk, appointed liquidator of RAL inJune after having previously served as voluntary administrator since October, said despite the strong recent season cash reserves were on track to run dry in two months, potentially before a sale of the business could be completed.
“We’re in a position where we will effectively run out of cash at the end of November this year. We are waiting to hear from, hopefully, the Crown next week on just what their position is in terms of funding the rest of the summer season going into next winter,” Fisk said.
He understood Cabinet was meeting on Monday and was hopeful RAL would make it on to the agenda. He was unwilling to say how much funding was being sought.
He said the election campaign raised the possibility of long-running coalition negotiations and until resolved had the Government in caretaker mode.
“It certainly doesn’t help. I understand there is a Cabinet meeting on Monday, and hopefully a decision comes out of that. Otherwise it could become problematic if late November comes and we’re still waiting for a new government to be formed.”
The volcanic triumvirate of Ngāuruhoe, Tongariro, and Ruapehu in the curve of SH4’s adventure highway. Photo / Visit Ruapehu
RAL administrators received $13 million in government funding over the past year to keep the skifields a going concern while Fisk sought a new long-term owner.
RAL, which operates the Tūroa and Whakapapa skifields on Mt Ruapehu, collapsed in October last year. Reports from the time blamed years of deferred maintenance, understood to be in the order of $25m, which the cash-strapped nonprofit was unable to raise.
Fisk said he was pressing ahead with urgent maintenance on the Tūroa lifts, and said with additional government support this could be completed over summer and would defer more substantial replacement for five years.
RAL is a major employer for the central North Island, and winding up the skifield would also trigger significant costs in removing chairlift machinery from the mountain.
Fisk said having to repeatedly go to the Government for top-up funding was not ideal but it was the “lesser of two evils”, and he was optimistic a deal could be done to give RAL and the region future certainty.
