Superior Court Judge Orders Hermitage Receivership
The private club is millions of dollars in debt.
Saturday, May 19, 2018, NewEnglandSkiIndustry.com
Citing "the Hermitage defendants do not have adequate resources to preserve and protect its land holdings," Windham Superior Court Judge John Treadwell has tentatively named Alan Tantleff of FTI Consulting receiver of the troubled private resort. The receivership could be in place by the end of the month, pending final court approvals.
The receivership request was granted on Friday, as Berkshire Bank disclosed it had made roughly $1 million in tax and utility payments in recent months to protect the property. One day earlier, Judge Treadwell ordered Hermitage to refund nearly $1 million to a prospective townhouse owner if the unit is not handed over with a clear title.
Prior to the payments, Hermitage reportedly owed Berkshire Bank $17.1 million. Headquartered in Boston, Berkshire Hills Bancorp, Inc. features 113 branches and claims $11.6 billion in assets and $420 million in net revenue. The company is listed on the New York Stock Exchange.
The Hermitage would be the third Vermont ski area presently operating under a receivership, joining Burke and Jay Peak.
Located in the Deerfield Valley near Mount Snow, the club features the Haystack ski area, a golf course, and numerous inns and restaurants. Hermitage founder Jim Barnes acquired the defunct Haystack ski area in October 2011 and soon installed two new fixed grip quad chairlifts. An 80,000 square foot lodge was constructed for 2014-15 and a $7.3 million heated, high speed detachable six person chairlift for 2015-16.
Barnes stepped down from day to day management in February and is reportedly facing facing sex discrimination and whistleblower complaints.