Popular NC Theme Park Files For Chapter 11 Bankruptcy

A popular North Carolina mountain tourist attraction has filed for chapter 11 bankruptcy.

Maggie Valley's Ghost Town in the Sky announced on Wednesday that it has filed for chapter 11 bankruptcy protection and reorganization. In a prepared release, the theme park announced that due to national credit crisis and economic decline and in order to address the financial and operational needs associated with re-opening and running the park, that the move was necessary.

"The economic uncertainty, coupled with the banking and credit crisis that has engulfed the nation, has made obtaining a lender very diffciult," said Ghost Town's President and CEO, Steve Shiver. "It is with this economic impact, preserving our relationships with vendors and protecting all of our creditors in mind that we now find no alternative but to file for bankruptcy protection."

After a five year hiatus, Ghost Town re-opened in May 2007 and the company reports that $20 million has already been reinvested in the park since that time. According to the company, Ghost Town paid over $125,000 in sales and amusement tax to North Carolina and Haywood County since it re-opened, but the immensity of the project, combined with the rising gas prices in 2008 and shortages in the area all were factors in the decision.

“This has been a very hard decision, and we’ve exhausted all other alternative actions. This is the only chance we truly have to pay people back the money we owe,” said Shiver. “We at least have a fighting chance to reopen and our decision to file is in the best interest of all parties involved.”

The company says its has not been able to secure the capital financing needed as they had projected in an attempt to pay off their outstanding debt, restructure short-term debt, complete rides that will help broaden Ghost Town’s guest appeal and make the park run more efficiently, and prepare for all costs associated with operating and marketing a regional theme park. During the reorganizational process, Ghost Town says it will take steps to improve its financial status by securing the funding needed for to complete all of its rides and transportation methods.

One of the most popular attractions, the Cliffhanger Rollercoaster, is open and by completing the Incline Railway, Ghost Town hopes to save money and continue to appeal to a wide range audience, including thrill-seekers, teenagers and pre-teens.

“Ghost Town is part of the history of Western North Carolina,” said Lynn Sylvester, a managing partner. “We are committed to preserving our theme park through this re-organizational process.”

Ghost Town plans to re-open for the 2009 season on May 15 and is currently selling 2009 Season Passes and Daily Admission Tickets through its website. It employs over 200 local residents during its season with payroll in excess of $2 million annually.