Two of the largest owners of Idahos high-profile Tamarack Resort filed Chapter 11 bankruptcy Feb. 15 after French bank Societe Generale canceled a $118 million construction loan for a major real estate project on the property. Societe Generale canceled the loan shortly after disclosing that it had lost $7 billion on unauthorized securities trades by an employee.
The loans cancellation prompted Cross Atlantic Real Estate LLC and VPG Investments LLC to file petitions under Chapter 11 to protect their ownership interests in Tamarack. Tamarack Resort LLC itself has not filed for Chapter 11 protection and has no current plans to do so. Court records indicated that VPG owns 23.6% of the resort. Cross Atlantic owns 48% of the resort, according to media reports.
“While construction is suffering until a replacement loan is found, resort operations is experiencing its most successful season to date,” said Jean-Pierre Boespflug, managing member of Cross Atlantic and CEO of Tamarack Resorts. “The resorts fourth winter season has seen a record number of skiers and guests, coupled with extraordinary snowfall and high guest satisfaction ratings, leading to revenues exceeding projections.”
Tamarack Resorts approved master plan calls for construction of 2,043 residential units and hotel and conference facilities. The total project covers 3,600 acres, including 1,500 acres of private land encompassing a golf course, housing and the village. The remaining 2,100 acres are leased from the state with permits for 11 ski lifts. Nearly 700 residential units have been sold for $515.8 million since the resort opened in 2004, according to the resorts website.
VPG lists assets of $29.2 million and liabilities of $301.4 million, including $242.6 million in unsecured loans. Its largest creditor is Credit Suisse Cayman Islands, which extended the company a $262 million loan secured by its 23.6% ownership in Tamarack Resort LLC, court records show.
