BOSS caught up with former Marmot president Steve Crisafulli to get his perspective on the ongoing Any Mountain bankruptcy, a case in which he is now intimately involved. (see BOSS_0515). In interviews with local papers, Bud Hoffman, the principal owner of Any Mountain, has been rather outspoken about his situation with Cardinal Financial, which is owned by Crisafulli, but Crisafulli apparently thinks Hoffmans negative perspective is misplaced.
“I realize he sees me as the devil incarnate, but honestly I cant figure out why,” said Crisafulli. “I gave him several opportunities and he simply put me in a situation where I had no other choice.”
Apparently the ordeal began a year and a half ago when Cardinal Financial learned of Any Mountains financial troubles with their former lender, GE Capital. GE had seized the bank accounts of Any Mountain for lack of payment on a $400,000 loan and was en route to forcing the company into Bankruptcy. Cardinal bought the loan from GE and added an additional $1 million in capital for operating expenses.
“At the time, Any Mountain had 11 stores and Northern California couldnt afford to lose that kind of retailer the only stores that would be left were REI and the Marmot store,” said Crisafulli. “I thought we could get him whole. I was supposed to be out in 60 days; 15 months later I hadnt seen a penny from them not even interest payments.”
Cardinal then took up where GE Capital left off, and seized Any Mountains bank accounts, forcing them to declare Chapter 11 bankruptcy.
In the latest courtroom developments, the court has ordered Any Mountain to make $45,000 per week payments to Cardinal, but payments to unsecured creditors have not been hammered out. Also, in a motion filed on April 11, Any Mountains Attorney, Michael C. Fallon, asked for permission to withdraw from the case due to “irreconcilable differences” between himself and Mr. Hoffman.
>>> Well, weve all had to deal with net never terms in the ski business, but this one takes the cake…
