'Worst case scenario' as Ruapehu ski operation liquidated

June 20, 2023

Meetings to decide the future of Whakapapa and Tūroa failed to reach a definitive agreement, leading to the liquidation. (Source: 1News)

Just weeks out from the scheduled start to the Mt Ruapehu ski season, the company behind operations is going into liquidation.

It’s the “worst case scenario”, putting the future of skiing on the mountain and the region's economy at risk.

It comes after a critical meeting to decide on the mountain’s future ended with no agreement.

Creditors gathered for the watershed meeting in Auckland, Ohakune and Wellington today to vote on the future of Tūroa and Whakapapa ski fields.

The first vote on the Deed of Company Arrangement (DOCA) proposed by the Ruapehu Ski Field Stakeholders Association reached a 71% vote but failed on creditor value, only reaching 8% of the 75% required.

Creditors gathered for the watershed meeting in Auckland, Ohakune and Wellington today to vote on the future of Tūroa and Whakapapa ski fields.

This option was favoured by lifetime pass holders but not by Ministry of Business, Innovation and Employment and another major creditor ANZ Bank.

Vote two on pre-packaged liquidation also failed, reaching 44% on the vote.

It had the backing of MBIE but was blocked by life pass holders. This would have seen Tūroa and Whakapapa split and sold to two operators for $1 each.

With the second option failing to meet the 50% threshold Ruapehu Alpine Lifts was liquidated, with PwC appointed by the company directors.

The company went into voluntary administration last year.

The liquidation hearing is set down for the Auckland High Court tomorrow.

It was announced at the meeting that creditors who are also shareholders in RAL would have their votes discounted, leaving many surprised.

The ski season is already underway in the South Island, it was hoped that Ruapehu's fields would open in early July.

By Leo Zaugg

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