Timberline Four Seasons Resort will go on the auction block in Philadelphia on Nov. 19, following an order filed Friday in U.S. Bankruptcy Court for the Eastern District of Pennsylvania.
A minimum bid of $2.5 million has been set for the Tucker County ski area and real estate development, which filed for Chapter 11 bankruptcy protection in April. That amount matches a purchase proposal made for the property several months ago.
Under the terms of the auction, the Timberline debtors have the right to set a different minimum bid amount up to three days before a Nov. 15 deadline for written bids to be received.
If two or more qualified bids are received, the parties submitting them will proceed to an auction, to be held in the office of Timberline’s legal counsel, Ciardi, Ciardi & Austin in Philadelphia on Nov. 19. The auction will begin following the announcement of the highest and best bid received. Any initial counter-bid for the property must exceed the $2.5 million pending offer by at least $100,000, and all subsequent bids must be in increments of $100,000.
A winning bid and a second-highest bid will be identified on Nov. 19, and U.S. Bankruptcy Judge Jean K. FitzSimon will confirm the results of the auction on Nov. 20.
Closing on the sale may occur as early as 15 days after an order approving the sale is issued, but no later than Dec. 31.
The property will be sold as-is, but subject to claims from utility providers.
Included in the sale is Timberline’s ski area, with four lifts and 22 trails, 24,000-square-foot lodge, 20-room hotel, and more than 200 acres of developable land adjacent to the ski area.
The ski area opened more than 30 years ago, but closed in late February following a series of problems with lifts, snowmaking gear and financing.
From June through August, the Timberline debtors and their investment banking firm approached 119 potential buyers for the property, including 15 large multiple resort owners, eight competing ski areas in the region, 47 financial buyers, 29 owners of hospitality properties and 20 wind farm operators. According to documents filed in the case, the effort generated only three letters of interest to purchase the property.
Debtors in the bankruptcy case are Timberline Four Seasons Resort Management Co., Long Run Realty, and Herz, Herz & Reichle, Inc.