BOZEMAN – Moonlight Basin Ranch said Wednesday the ski and golf community has filed for Chapter 11 bankruptcy protection after Lehman Brothers decided to foreclose on an outstanding loan.
According to court documents, the resort put its lodge, spa, Jack Nicklaus golf course and several entities up as collateral just over two years ago for the $100 million loan.
Lehman Brothers moved to foreclose on Moonlight Basin in September, saying the resort owed the bank $86.9 million, including more than $78 million of the original loan and about $8.3 million in interest. The payments on the loan were supposed to begin in March 2008, but that deadline was extended to Sept. 7, 2008 — exactly a year after the loan was made.
Resort officials say that with the bankruptcy filing, the foreclosure action will be stayed until the reorganization of the company moves forward.
“With this filing, we can assure everyone — our customers, home owners, suppliers, employees and our communities — that Moonlight Basin intends to be open for business as usual,” resort CEO Lee Poole said.
Moonlight Basin, which covers 7,800 acres in the Madison Mountains, employs more than 250 seasonal and year-round workers. Resort officials say they intend to open for the ski season Dec. 12.
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