Voluntary administration

Taxpayers are unlikely to ever be repaid $15 million the Government loaned the North Island ski fields, that were once New Zealand's busiest.

"The positive impact that Ruapehu Alpine Lifts and its operations have on our local economy is significant and hugely important to our district from a tourism and cultural perspective. "It's a hugely important part of our industry and without it, it puts a lot of pressure on the South Island resorts. "Yes, we do have a loan, and it is of concern, and the ratepayer has every reason to question what's going to happen with that. "Taupō District Council chose to invest $1 million of investment bonds in the Sky Waka gondola... "What they were trying to do, by putting up the Sky Waka gondola, was trying to have a sustainable business year round. If we only go back three years, we were selling a lot of products through the stores there and through the rental departments on both sides of the hill. "As such, the directors made the decision to appoint voluntarv administrators. "There was a request for funding and it was turned down. The council had invested $500,000 in the new gondola on the slopes of Whakapapa; Kirton said councillors were yet to meet to discuss how they would treat that debt. MBIE had first granted it a $10m loan in 2018 to build its Sky Waka gondola on the slopes of Whakapapa. It can demand that the loan be converted into $5m in shares in the company, for what that's worth, given the company is now in administration. Right now, the company is not getting even a fraction of that patronage.

Ruapehu District councillor Janelle Hinch is calling for Government support after the ski fields announced voluntary administration yesterday.

Hinch said the team at Mt Ruapehu have approached the Government for a "reasonable" investment. "They've had to lay off a bunch of people this year which is really sad, 700 jobs is the usual employment base and another 880 for the district as indirect jobs." Ruapehu District councillor Janelle Hinch is calling for Government support after the ski fields announced voluntary administration yesterday.

WELLINGTON, New Zealand (AP) — Two of New Zealand's largest ski areas on Tuesday were placed into a type of bankruptcy proceeding following a disastrous ...

Last year the company lost nearly 6 million New Zealand dollars ($3.4 million) and its total debt climbed to over NZ$30 million. He said it was hard to predict how long any individual ski area could survive. The company had unsuccessfully sought a major new investor. Even in New Zealand’s cooler South Island, climate change is raising questions about the future of skiing and snowboarding. Voluntary Administrator John Fisk, of PwC New Zealand, said the last three seasons had placed Ruapehu Alpine Lifts under significant cashflow pressure. The Tūroa and Whakapapa ski areas, which are both owned by Ruapehu Alpine Lifts, entered what is called voluntary administration.

Ruapehu Alpine Lifts Limited (RAL), the company that operates the Whakapapa and Tūroa skifields in the central North Island, New Zealand, has gone into ...

The voluntary administrators will now continue to trade the business while they look to determine the most appropriate way forward to maximize recoveries for creditors. Should they close, it would leave the North Island without a major ski area. Warm temperatures and rain contributed to “the worst ski season in decades.” The skifield closed “until further notice” in late August but reopened after a big snowstorm earlier this month. There has been no snow since then, and with the forecast bleak, Tūroa closed for the season on Sunday, October 9th. The company employs approximately 196 staff across the Whakapapa and Tūroa ski areas. Ruapehu Alpine Lifts Limited (RAL), the company that operates the Whakapapa and Tūroa skifields in the central North Island, New Zealand, has gone into voluntary administration.

The Tūroa and Whakapapa ski areas, which are both owned by Ruapehu Alpine Lifts, entered what is called voluntary administration. The proceeding is open to ...

Last year the company lost nearly 6 million New Zealand dollars ($3.4 million) and its total debt climbed to over NZ$30 million. He said it was hard to predict how long any individual ski area could survive. The company had unsuccessfully sought a major new investor. Even in New Zealand’s cooler South Island, climate change is raising questions about the future of skiing and snowboarding. Voluntary Administrator John Fisk, of PwC New Zealand, said the last three seasons had placed Ruapehu Alpine Lifts under significant cashflow pressure. Rain repeatedly washed away the snow this year, and Tūroa’s 50 snowmaking machines proved no match against balmy temperatures.

In a statement, Ruapehu Alpine Lifts says John Fisk and Richard Nacey, of PwC, were appointed voluntary administrators following a resolution of the company's ...

[about a third of its 405 staff on the mountain had lost their jobs](https://www.stuff.co.nz/national/300669151/more-than-130-staff-made-redundant-at-mt-ruapehu--troa-skifield-closed) due to a lack of both snow and visitors on Mt Ruapehu’s skifields. Ruapehu Alpine Lifts soon after said forecasts were unlikely to replenish the ski fields and the decision was made to close Tūroa on Sunday, October 9. “We would certainly prefer to have the snow, that’s for sure, and certainly prefer to be operating at full whack.” He says the news will be upsetting for staff and he really feels for them. An initial report on the financial state of the company will be tabled at the first meeting of creditors. He says directors have looked at options including a capital raise and a request for additional Crown funding, but have not been able to secure the required level of capital.

Ruapehu Alpine Lifts Limited (RAL) has gone into voluntary administration after three years of disastrous ski seasons due to the lack of snow and the Covid.

Ruapehu is stunning, an active volcano that film director Peter Jackson used as a backdrop in The Lord of the Rings movies. "Two years of Covid and now another disaster ski season. The National Institute of Water and Atmospheric Research (Niwa) found New Zealand's average winter temperature hit a new record this year of almost 10C. Newly elected Ruapehu mayor Weston Kirton said he feels deeply for all involved on every level, from the bosses to the workers on the ski fields and around the district. It doesn't mention climate change once in its most recent 54-page annual report, instead listing the major threats to its business as further Covid-19 disruptions and borrowing restrictions. Phil Jackson, who built the Hobbit Motorlodge in Ohakune nearly 40 years ago, said this year has been the worst ski season since 1983 when the mountain was covered in ice. "We've had some pretty decent snowfalls, but they've generally been followed by rain events, which has washed a lot of the snow away," he said. He said it was hard to predict how long any individual ski area could survive. "The community will be shell-shocked," Kirton, who also served as mayor for the district two decades ago, said. But the poor season is putting severe financial pressure on RAL, which owns both ski areas. Chief Executive Jono Dean this week did not immediately respond to written questions about the company's future. Should they be forced to close permanently, it would leave the North Island without any major ski areas.

News that Ruapehu Alpine Lifts had been put into voluntary administration was met by concern from snow sports lovers, season pass holders and local ...

"The potential for Life Pass holders (and new ones) investing new funds is being explored. However, any new activities must be approved by the Tongariro National Park Management Plan. If agreement could be reached on activities permitted on the mountain, this could improve viability and increase interest from potential investors/purchasers. This led many skiers to speculate that big changes were ahead for the beleaguered ski fields. The two North Island ski fields, Whakapapa and Tūroa, are visited by between 300,000 and 450,000 skiers a season. Yesterday, RAL handed over the company to administrators at PwC to see if the snow business could be saved.

Auditors had significant doubt about Ruapehu Alpine Lifts' ability to continue "as a going concern". A dire ski season was the nail in the coffin.

“We will be trying to get back what we are owed ... The combination of Covid and a lack of snow this season has clearly impacted the mountain's ability to function, he said, and that it would have a massive flow on effect. "The major drawcard to the region is skiing and snowboarding, so if that closes down you are taking away almost a quarter of the reason people come to town." [wage subsidies](https://www.stuff.co.nz/travel/news/126605312/state-cash-continues-to-prop-up-tourism-businesses), $1m of relief on annual licence costs, and MBIE increased its $10m loan to it by $5m to fund urgent works on the Tūroa lifts in advance of winter 2022. He said the first priority would be to engage with administrators to make sure the future of the business was sustainable. “They are up for the challenge and have an unwavering commitment to our partners and community.” “We have to be mindful of our ratepayers and that this is an iconic product and important for our tourism businesses, and we will support them any way we can.” Ruapehu district mayor Weston Kirton hoped the council’s $500,000 loan to RAL would be paid back but RAL’s management may require “a new broom to come and sort out some of its issues”. Taupō mayor David Trewavas said while he wasn’t surprised by the announcement, he hoped RAL would be able to “trade its way out of this”. The Tūwharetoa Māori Trust Board and Tūwharetoa Settlement Trust declined to comment on the ongoing situation but the mayors of the Taupō and Ruapehu districts were confident that, one way or another, they would see their investment returned to ratepayers. [Taupō District Council holds $1m worth of bonds](https://www.stuff.co.nz/waikato-times/news/taupo-times/104796432/mayor-confident-gondola-investment-will-pay-off#:~:text=Taup%C5%8D%20District%20Council%20has%20invested,the%20Government's%20Provincial%20Growth%20Fund), and the remaining $3m are held by the Bay Trust and the two private entities. [Sky Waka Gondola project](https://www.stuff.co.nz/travel/back-your-backyard/121596406/sky-waka-mt-ruapehu-a-journey-to-nzs-highest-cafe) at the Whakapapa Ski Area and, at the end of the 2020 financial year, $13.5m worth of bonds were committed to by Tūwharetoa Gondola Partnership Limited, the Taupō District Council, the Bay Trust and two unnamed private entities.

Taxpayers are unlikely to ever see the repayment of the $15m the Government loaned the North Island ski fields, that were once New Zealand's busiest.

“The positive impact that Ruapehu Alpine Lifts and its operations have on our local economy is significant and hugely important to our district from a tourism and cultural perspective. “Yes, we do have a loan, and it is of concern, and the ratepayer has every reason to question what's going to happen with that. Another on the long list of secured creditors is ski and snowboard company Burton Australia. If we only go back three years, we were selling a lot of products through the stores there and through the rental departments on both sides of the hill. “What they were trying to do, by putting up the Sky Waka gondola, was trying to have a sustainable business year round. “It's a hugely important part of our industry and without it, it puts a lot of pressure on the South Island resorts. The council had invested $500,000 in the new gondola on the slopes of Whakapapa; Kirton said councillors were yet to meet to discuss how they would treat that debt. “As such, the directors made the decision to appoint voluntary administrators. It can demand that the loan be converted into $5m in shares in the company, for what that's worth, given the company is now in administration. MBIE had first granted it a $10m loan in 2018 to build its Sky Waka gondola on the slopes of Whakapapa. The company posted a statement on Facebook on Tuesday evening, saying Whakapapa would continue to operate as planned, weather permitting, through to season close. Right now, the company is not getting even a fraction of that patronage.