Moonlight Basin in Montana is only five years old and it's future is very uncertain.

Not long after foreclosure worries surfaced as a result of Moonlight Basin Ranch’s financial troubles has the Montana ski resort had to make it official by filing for bankruptcy.

The resort’s operating company Moonlight Basin Ranch L.P. announced yesterday that the company and its subsidiaries filed voluntary petitions in U.S. Bankruptcy Court for the District of Montana for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Moonlight has been facing foreclosure to it’s major lender Lehman Brothers for some time.

Here is part of the company’s statement:

“This was a necessary decision brought on by Lehman Brothers’ actions, including its recent effort to foreclose on Moonlight Basin Resort and the uncertain future of the Resort resulting from Lehman Brothers’ actions,” said COO Russ McElyea. “We decided that it is in the best interest of the Moonlight Basin family, including our creditors, employees, customers, suppliers, home owners, and the Montana communities in which Moonlight Basin operates to reorganize under Chapter 11.”

Moonlight Basin concluded that Bankruptcy Court protection was necessary as a result of Lehman Brothers’ decision to foreclose on an outstanding loan, and its threats to cease critical funding, rather than work with Moonlight Basin to appropriately restructure its debt contrary to its prior representations to Moonlight Basin. Chapter 11 protection will enable Moonlight Basin to conduct its business operations as usual while it develops a long term reorganization plan. With the bankruptcy filing, the foreclosure action brought by Lehman Brothers against Moonlight Basin is automatically stayed while the reorganization goes forward.

Moonlight Basin’s staff, which consists of over 250 seasonal and year round employees are excited about the upcoming ski season. This year, Moonlight Basin is part of a community wide effort to promote Big Sky, Montana and the Biggest Skiing in America. The Moonlight Basin and Big Sky Resort interconnect ticket provides access to over 5,500 acres of terrain. Moonlight Basin is excited to offer a collection of new events and programs for the season, including a Freeride Team, new SnowSports programs and expanded terrain park. In addition, Moonlight Basin is proud to encourage academic achievement in our local community through our legendary M-BAR-T program, which rewards scholastic achievement with free skiing at Moonlight Basin. Each of these programs will continue without interruption.

“With this filing, we can assure everyone — our customers, home owners, suppliers, employees and our communities — that Moonlight Basin intends to be open for business as usual. We look forward to a successful opening of the ski season at Moonlight Basin on December 12.” added Lee Poole, President and CEO. “Our guests can continue to rely on us for our genuine Montana hospitality and our commitment to the land we cherish.”

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