Voluntary Administrators appointed to Ruapehu Alpine Lifts Limited
18 November 2022
Update from Administrators of Ruapehu Alpine Lifts Limited
The Government, through the Ministry of Business, Innovation and Employment (MBIE), and Kānoa - Regional Economic Development & Investment Unit (Kānoa – RDU), have today requested the Administrators of RAL to send a letter and Life Pass Holder Support Form to each RAL Life Pass Holder. The letter is intended to establish Life Pass Holder interest in providing financial support for a plan that could avoid a liquidation.
The Life Pass Holder Support Form asks each Life Pass Holder to confirm whether they would support a new entity operating the Turoa and Whakapapa ski fields, including the Sky Waka gondola, by paying a $2,500 transfer fee to be able to use their life pass to continue skiing on Mt Ruapehu, under the operation of the new entity, if this commercial transaction is able to be implemented.
The Life Pass Holder Support Form also asks each Life Pass Holder to confirm whether they would agree to pay a future levy of up to $250 per year for two or three years to fund ongoing capital maintenance and development.
Voluntary Administrator John Fisk says, “Ministry of Business, Innovation and Employment and Kānoa – RDU are looking to identify the extent of potential support from Life Pass Holders for a new entity to operate the Turoa and Whakapapa ski fields, including the Sky Waka gondola. We encourage all Life Pass holders to complete the survey before the due date of 24 November 2022. A level of funding support from the Life Pass Holder group is critical to the success of any commercial transaction for a new entity that takes over the operations of RAL.”
The form and letter will be available on the PwC New Zealand website at: https://www.pwc.co.nz/services/business-restructuring/voluntary-administration/ruapehu-alpine-lifts-limited.html
It is requested that the Life Pass Holder Support Form is completed and returned to the Administrators by close of business on Thursday 24 November 2022.
If there are supporters who are not Life Pass Holders, the Administrators have set up a separate survey form to capture the extent of this interest. It is also available on the PwC website.
11 October 2022
John Fisk and Richard Nacey, of PwC, were appointed voluntary administrators of Ruapehu Alpine Lifts Limited (RAL) on 11 October 2022 following a resolution of the Directors of the Company. RAL operates the Whakapapa and Tūroa skifields in the central North Island. The Company currently employs approximately 196 staff across the Whakapapa and Tūroa ski areas.
Voluntary Administrator John Fisk says, “The Company has had a very difficult last three years, with the impact of Covid-19 restrictions, paired with poor weather this season, meaning that the business has been placed under significant cash flow pressure. The Directors of RAL have explored a number of options, including a capital raise and a request for additional Crown funding, but have not been able to secure the required level of capital. As such, the Directors made the decision to appoint Voluntary Administrators. The Voluntary Administrators will now continue to trade the business while we look to determine the most appropriate way forward to maximise recoveries for creditors.”
The Voluntary Administrators will be preparing an initial report on the financial state of the Company that will be tabled at the first meeting of creditors shortly.
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