Greek Peak Files for Chapter 11

By Matt Hicks

Greek Peak Files for Chapter 11

August 2, 2012 Updated Aug 2, 2012 at 6:14 PM EDT

Town of Virgil, NY (WBNG Binghamton) The largest resort in central New York files for Chapter 11 bankruptcy protection.

This move comes a few weeks after the business announced that 1,000 were at stake due to a loan that fell through. Because of a winter with minimal snowfall, Greek Peak had to take out a $1.6 million loan to ensure they'll stay operational until this winter.

But the bank that issued the loan, Tennessee Commerce Bank, failed.

Greek Peak was unsuccessful in negotiating a reorganization plan with the FDIC, but the federal agency will be providing the business "Debtor in Possession" financing to continue and sustain operations.

In a release on the company's website, Greek Peak officials said the Chapter 11 filing is mean to provide time to find another lender and develop a new strategy. The business will continue as normal and they expect to be out from under Chapter 11 by the time ski season starts.