The Ghost Town in the Sky theme park in Maggie Valley, North Carolina is headed towards bankruptcy just two years after reopening.
TPT reported last week that the park was on the verge of bankruptcy after to failing to pay staff wages in full. The local Smoky Mountain News is now reporting that park's owners are seeking a deal in bankruptcy court which would see creditors receiving just 25% of the money owed to them.
The deal will be presented to the court next week, and proposes that creditors will receive the money over a seven year period. It is part of a wider reorganisation plan designed to pull the park out of bankruptcy and move it towards a sustainable, profitable future.
However, Ghost Town in the Sky has already run into trouble with the plan, after failing to disclose profit and loss statements, tax filings and financial projections in its statement to the court. A number of the park's 200 creditors have already objected to the plan, which would see the park paying back $600,000 of debts totalling $2.4 million. The objection from the park's mortgage holder, BB&T, claims that the owners will be unable to repay even this amount since the park is yet to turn a profit since reopening in 2007.
If the plan is rejected following a vote by creditors, the park will be forced into liquidation and the site will be sold off in order to fund repayment of the debt. The chances of it reopening as a theme park under new ownership may be slim, although it has been rescued from bankruptcy before.
The park previously went bankrupt in 2002 and remained closed until new owners revived it in 2007. It subsequently struggled to reopen its headliner attraction, the Cliffhanger rollercoaster, finally managing it last month. However, it is believed the ride closed again before the end of the 2009 season.