Debt-laden Ruapehu Alpine Lifts faces liquidation

The operator of Mt Ruapehu’s Tūroa and Whakapapa ski fields faces liquidation after the Government reportedly declined to provide a lifeline to keep it going until the 2023 winter season.

Ruapehu Alpine Lifts (RAL) went into voluntary administration in October after the combined effects of Covid-19 lockdowns and border closures, and a poor ski season left it $45 million in debt.

The voluntary administrators needed $9m to survive until the ski season opened. They had put together a $4m rescue package, from the Government and ANZ, but that money was due to run out by Christmas.

Voluntary administrator John Fisk held a public meeting in Ohakune on Wednesday night, and said Monday’s Cabinet meeting advised there was no more money available, according to a Facebook post by Owhango Community Board member Murray Wilson.

Sam Clarkson, founder of the Save Mt Ruapehu Skifields Group, said the Cabinet decision not to inject more funding was baffling.

‘‘That leaves us with only one option now, that’s liquidation.’’

Either way, taxpayer money would be needed but the most expensive option was liquidation, Clarkson said.

It was estimated it would cost the Crown up to $100m to remove the ski field infrastructure from Mt Ruapehu and return the area, in a National Park, to its natural state. There would also be revenue loss for local businesses.

Last month, the Ministry of Business, Innovation and Employment asked the administrators to survey RAL’S 14,500 life pass holders to see if they would financially support a new entity to operate the ski fields.

A further $10m to $15m was needed to set up the new entity.

Clarkson said administrators needed to hold a watershed meeting before December 16. ‘‘We only really have one choice, which is to vote to liquidate.’’

RAL was the largest employer in the region, with up to 700 workers at the season’s peak.

The ski fields also supported a $100m estimated annual economic benefit to the region.

‘‘That leaves us with only one option now, that’s liquidation.’’

Sam Clarkson

Save Mt Ruapehu Skifields Group