The federal receiver in charge of Jay Peak and Burke Mountain resorts told the U.S. District Court in Miami recently there is not enough money on hand to pay him as well as fund resort operations.
In a recent court filing, Michael Goldberg, the receiver, stated, “the Receivership Entities are in an extremely tight cash situation and need every dollar of available cash to fund their operations,” referring to the two ski resorts in the Northeast Kingdom. The filing was a motion to extend the submission deadline for the receiveship’s professional compensation applications with the federal court.
The federal receivership was put in place in mid-April after state and federal allegations were lodged against Ariel Quiros, the resorts’ principal owner, and general partner Bill Stenger.
The pair have been accused of a Ponzi-like scheme dating to 2008 in which more than $200 million of foreign investors’ capital has been misappropriated, according to authorities.
According to Goldberg’s motion to extend the deadline for receivership fees, “The Receiver and his professionals recognize the importance that all available cash be directed to fund the Receivership Entities’ operations in order for them to survive, and accordingly, have agreed to defer their request for fees until such time as the estate has sufficient cash to pay them.”
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