From theme park review
"As a direct result of the national credit crisis and economic decline, North Carolina's Ghost Town in the Sky announced today that, in order to address the financial and operational challenges associated re-opening and running a theme park that sat dormant five years prior to the company purchasing Ghost Town in August of 2006, they have filed for bankruptcy protection and reorganization under Chapter 11 of the Federal Code on March 10, 2009.
Ghost Town has not been able to secure the capital financing needed as they had projected previously, which would have been used to pay off their outstanding debt restructure short-term debt, complete rides that will help broaden Ghost Town’s guest appeal and make the park run more efficiently, and prepare for all costs associated with operating and marketing a regional theme park.
“The economic uncertainty, coupled with the banking and credit crisis that has engulfed the nation, has made obtaining a lender very difficult,” states Steve Shiver, president and CEO of Ghost Town.
“It is with this economic impact, preserving our relationships with vendors and protecting all of our creditors in mind that we now find no alternative but to file for bankruptcy protection,” continues Shiver. “However, we feel that a reorganizational plan will allow us to open on schedule and over time, keep all creditor groups whole or as best as reasonably possible.”
During the reorganizational process, Ghost Town will take steps to improve its financial status by securing the funding needed for Ghost Town to complete all of its rides and transportation methods.
Once The Cliffhanger roller coaster is open, Ghost Town will appeal to a broader audience, including thrill-seekers, teenagers and pre-teens.
By completing the Incline Railway, Ghost Town will save a significant amount of money on bus transportation and will attract more school groups who, in the 2007 and 2008 season, had to be bussed to the top of the mountain where the Theme Park is located.
Ghost Town employs over 200 local residents during its season with payroll in excess of $2 million annually. They have continued to pay salaried employees during the winter months when the park is closed for the season to maintain the grounds and prepare for the upcoming season.
Since re-opening in May of 2007, Ghost Town also has paid over $125,000 in sales and amusement tax to the state of North Carolina and Haywood County. In addition, Haywood County has experienced hotel and motel occupancy growth and more revenue has been generated from the Occupancy Tax collected. “Ghost Town is part of the history of Western North Carolina,” states Lynn Sylvester, one of Ghost Town’s five managing partners, CPA and Controller. “We are committed to preserving our theme park through this re-organizational process. Given the mission of the Rural Development program to create and retain jobs, the USDA who has a 70% guarantee on the primary loan facility held by BB&T, has signified a willingness to participate in a restructured debt arrangement.”
Over $20 million has already been invested in the park since Ghost Town’s re-opening in 2007. The immensity of the project coupled with the 2008 season’s rising gas prices and shortages in the area, in addition to economic downturn, are all factors that have contributed to the current situation.
“This has been a very hard decision, and we’ve exhausted all other alternative actions. This is the only chance we truly have to pay people back the money we owe,” said Shiver. “We at least have a fighting chance to reopen and our decision to file is in the best interest of all parties involved.”
Ghost Town plans to re-open for the 2009 season on May 15 and is currently selling 2009 Season Passes and Daily Admission Tickets through its website. "
Hope they get the Cliffhanger up and running by memorial day weekend. Might have to change my plans to hit the park during the Hard Rock Park trip if they do.
