Less than two years after acquiring Mountain Creek, the resort's new ownership has filed for chapter 11 reorganization, the New Jersey Herald reported today. The filing seeks a restructuring of the resort's debt including an estimated $26 million in contractually obligated sewer debt payments to the Vernon Township Municipal Utilities Authority (MUA). The debt obligations to the township stem from a 2012 agreement under which the resort's former principal owner, Gene Mulvihill, had agreed to have the resort assume approximately 65 percent of the MUA's debt to the Sussex County Municipal Utilities Authority for the buildout of the township's sewer system. A Mountain Creek spokesperson indicated that the filing would not affect existing operations at the resort and would best enable it to attract outside investment for other planned ventures. The resort's waterpark is scheduled to open the weekend of June 10-11 and seven days a week starting June 22. With Vernon's sewer system currently facing a cumulative debt of more than $40 million, it is unclear how the debt restructuring might impact the township or how much of the sewer system debt might otherwise fall on the balance of ratepayers, most of whom dwell in condominiums and single-family homes, if the court approves the restructuring.
