Hermitage Club refinancing delayed
"We have not been able to finalize a financing commitment nor have been able to reach agreeable payoff terms with the bank," Hermitage President Harper Sibley wrote to members Thursday. "Although we all continue to work on this daily, with the holidays approaching we are not expecting to be able to close a transaction until the new year."
Berkshire Bank foreclosed the Hermitage's resort at Haystack Mountain, golf course, four inns and several townhouses in February. The following month, the Vermont Department of Taxes shut down Hermitage establishments for lack of tax payments.
Sibley has regularly updated members on a financial restructuring deal. The hope has been to secure a $25 million to $30 million loan and reopen some properties this winter.
Messages to members made mention of an upcoming closing on the loan. But that may take more time than anticipated, according to the most recent communication.
"As a result of this delay, the club will not be open over the Christmas holiday period, something I regret personally as I know how important this vacation period is to the life of the club," Sibley wrote to members. "Our best case would be to open the club in January and I will keep you posted on our progress towards that goal."
A court-appointed receiver is in charge of preserving the value of the foreclosed properties until the foreclosure process plays out. Part of the scope includes limited chairlift maintenance.
Reach staff writer Chris Mays at firstname.lastname@example.org, at @CMaysBR on Twitter and 802-254-2311, ext. 273.
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