Well, May 15th has come and gone and the the Burton team is apparently so frustruated with Mad River Glen management that they actually considered an outright offer for the outstanding shares.
Passing the May 15th deadline means that they will be unable to install a new lift for the 2006-07 season to replace the aging single chair.
In April, at the Mad River annual meeting, the Treasurer of the mountain reported that the expected loss for the year would be around $200 thousand. In addition, they plan to spend $130K on capital spending (chiefly the burial of power lines) and they have an initial installment deposit due on the rebuild of the single of $100K. The Mad River Reserve fund for capital expenses was around $425K at the beginning of the season. The planned spending will severely decrease their resources.
In addition, final payment of the Double Chairlift debt is due soon.
The Burton strategy is to hold back and see what the Mad River plan develops, especially with regard to the single chairlift financing. The cost estimate on the rebuild is significantly higher and the amount of financing extended to them is fixed. They have a larger “hole” to fill and they are counting on charity donations as key in their business plan. Their fundraiser has gone back to them with a feasability report that has not been made public. They have not hired her to run the final campaign.
If they are unable to raise the money, it is highly unlikely that the State Tramway department will allow them to run the single chair for the 2007-2008 season due to the age of that lift (installed in 1948).
