The fate of future operations on Mount Ruapehu will be decided on in a critical watershed meeting next week.
Ruapehu Alpine Lifts, the company that operates the Whakapapa and Tūroa ski fields, went into voluntary administration in October 2022.
The meeting will be held next Tuesday, where creditors will vote on the future of the mountain.
Three options will be put forward by administrators, which will be voted on in the meeting.
1. Deed of Company Arrangement (DOCA)
The first of the three options is the Deed of Company Arrangement (DOCA), which was proposed by the Ruapehu Skifields Stakeholders Association, a group formed to represent the estimated 14,000 life pass holders.
Under this option, the assets would be handed back to the directors of RAL, keeping their current structure.
Creditors would have to partially give up some of the money they are owed by RAL or push repayment dates back. Life pass holders would also need to purchase a new life pass.
ANZ Bank and the Crown are likely to vote together – they hold the most power in terms of credit value. The administrators say they don’t expect the two to vote in favour of the first option.
"We understand that the Crown is likely to vote against the proposed DOCA, and that ANZ will vote with the Crown. If this occurs, the resolution is not expected to pass."
If this doesn’t pass, they move to the next option.
2. Liquidate and sell the fields
The second option, proposed by the Ministry of Business, Innovation and Employment, would see the two fields split in two and sold to two new operators.
It would see 25% of each operator be owned by the government through MBIE's Kanoa Regional Economic Development and Investment Unit, and all current employees would be moved to the new entities.
Whakapapa, located on Ruapehu’s northern slopes, will be sold to Whakapapa Holdings Limited. Before today, little was known about the company formed just last week.
Whakapapa Holdings say they have agreed to purchase the field for just $1, taking on $14 million in debt in the process.
It’s run by former Whakapapa and Tūroa CEO Dave Mazey.
"Whakapapa Holdings was initially drawn to the opportunity from a knowledge of this business’ proud standing in the region and the country, by the strengths within the current team and the passion and commitment of the many wider stakeholders, especially iwi," Mazey said.
Pure Tūroa Limited – registered as a company in March – would take over the Tūroa ski field on Ruapehu’s western slopes, just out of Ohakune.
Like Whakapapa Holdings, Pure Tūroa have agreed to pay just $1 for the field.
Life passes won’t be offered to current holders by Pure Tūroa, but they will be offered discounted muti-year passes instead.
In an open letter to the community last week, they detailed some of their plans for the field.
“We very much appreciate and respect the significance of the maunga, and Tongariro National Park, to iwi,” it read.
"The goal is to preserve economic prosperity for our local communities, provide new jobs, develop year-round opportunities, and continue to develop a pathway for our tamariki through their school years and into the snow sports industry.”
3. Liquidation
The final option is liquidation. If the first two don’t pass the administration will end and RAL’s assets will be handed back to the original directors.
An application to put the company into liquidation has already been filed and will be heard in the Auckland High Court on June 21, the day after the meeting.
RAL's administrators say this is the worst of the three options, and could result in the closure of both fields.
"It may be possible for the liquidator to then complete a transaction with PTL and WHL, but if not there is potential for closure of operations at Tūroa and Whakapapa."
The voting process
Half of the creditors are required to vote in favour of one of the three options for it to pass, moving to the next requirement of 75% of its dollar value.
If the money owed to the creditors who vote in favour does not reach 75% of the total owed by RAL, the vote fails, moving to the second of the proposed options.
They’ll go through one option at a time, with the result of each having to be known before moving on to the next.
All will be decided at 11am next Tuesday when creditors gather in Auckland, Ohakune and Wellington for the critical vote.
By Leo Zaugg
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