Ruling Bodes Well For Schweitzer

Finally, the Schweitzer Mountain Resort has a chance to move forward and become the winter playland it was meant to be.

U.S. Bankruptcy Judge James D. Pappas’ recent ruling that permits the sale of the deeply indebted ski hill should conclude the legal wrangling that has scared buyers and investors. The resort’s future couldn’t be brighter, unless the region experienced an early snowfall this year to permit a Thanksgiving holiday opening.

Sale of the resort, which would bring an infusion of desperately needed cash to the operation, could occur by year’s end, unless the two remaining holdouts among the mountain’s owners find a way to block it. Unfortunately, Jean Brown and her daughter, Bobbie Huguenin, are looking for ways to do just that.

It’s hard to root against them. The Brown family transformed Schweitzer from a mountain wilderness to one of the prime ski areas in the Inland Northwest. The family risked everything to bring quality skiing to this area. Brown and Huguenin deserve more than a bankruptcy sale and a dismissive “thanks for the good times.” But that may be all that’s left. The other family owners saw the writing on the wall and reluctantly agreed to the sale.

The handwriting? Schweitzer Mountain Resort is $28 million in debt. It needs a massive infusion of money - from $10 million to $30 million - for infrastructure and capital improvements to compete as a destination resort. The Brown family consistently has struggled with cash-flow problems from debt service. In the 1990s, competition from government-subsidized Silver Mountain and bad weather brought that financial struggle to a head.

Importantly, Judge Pappas put another possible area of litigation to rest by ruling the $18 million appraisal for Schweitzer is fair. Creditors had favored selling Schweitzer to Harbor Properties of Seattle for $18 million. Now the resort will be put up for bid.

“There are no obstacles now for the sale to Harbor or another qualified purchaser, except in the unlikely event that the court stays the bankruptcy court’s decision on appeal,” said Ford Elsaesser, the capable receiver for Schweitzer.

That’s not the only good news from Schweitzer and the community of Sandpoint, which depends on the mountain for winter survival. Season pass sales are going very well, according to Elsaesser, who’s hoping the recent cold, cloudy weather is a good sign of a long ski season.

“This year’s operation is fully guaranteed no matter what happens,” he said.

Now, with a major legal hurdle cleared, Schweitzer fans can dream about a white Christmas - and a quick sale.