May 2023

RMCA NEWSLETTER – May 2023                                                    

RAL Voluntary Administration Process Update

Our last update to clubs was March. Since then, there has been no communication from MBIE about the process. PWC has communicated from time to time, however, has not been able to provide much information due to non-disclosure agreements. The PWC administrators continue to work closely with RAL operations and provide updates to the Creditors committee. PWC updates to public are on their website.

https://www.pwc.co.nz/services/business-restructuring/voluntary-administration/ruapehu-alpine-lifts-limited.

Last week the head of the MBIE Kanoa Regional Development Unit reportedly advised two bidders of the total four (to date) bidders they were not preferred. And this was made public through media last Thursday. It came as a shock to RMCA and became a key topic for the RMCA Forum last Saturday. During the Forum, it became a key concern that MBIE had operated without transparency and potentially with conflicts of interest. Consequently, on Monday morning RMCA sent a letter to Hon Minister Kiritapu Allan in her capacity as minister of Regional Development. RMCA also sent a slightly different letter to another 8 MPs. Letters attached.

RMCA Forum

Club committee members and interested parties listened to Frank Risk Insurance, DoC

Tongariro and three representatives from RSSA – Ruapehu Ski fields Stakeholders Association. The other three bidders were invited, however two declined mainly due to the media news of last week. One bidder chose to not respond.

Frank Risk Insurance has been preparing for two years to offer an alternative to the main broker, Marsh. Based on information they provided on Saturday; their offering is worth looking at.

The presentation from DoC’s area manager George Taylor and staff covered several topics. They are gearing up for the winter and ask clubs to be mindful and respectful of the environment we have our lodges in.

RSSA provided a good presentation and specific to the VA of RAL. Below are the key points and suggested follow up actions for your clubs to consider:

  • Media reporting regarding the two preferred proposals from MBIE was misleading and unhelpful. More work is required before any legal and appropriate announcement can be made about the 2023 ski season and which organisation/s will become the ski field operator/s.
  • The presentation from RSSA outlined their objectives and vision which RMCA felt were very similar to that of the RMCA and clubs on Mt Ruapehu.
  • RMCA recognises the principles that RSSA is aiming to achieve.
  • Both organisations want to see a ski field operator capable of running a successful ski field at Whakapapa/Turoa. An organisation that understands and respects the maunga, the environment and communities that benefit from its existence.

May 2023

  • At this stage is seems that there has been no transparency to allow all creditors to see the alternative proposals that have been offered to MBIE administrator.
  • Unknown is who can/will operate the ski fields on Ruapehu this coming winter. Will a new company be able to get a licence? Is there sufficient time for a new organisation to get up and running?

RMCA feels any new operator needs to understand the key stakeholders and be able to work with them. As at the date of the Forum (Sat 13th) RMCA and clubs had only sighted one proposal (from RSSA) and it aligned well for clubs. RMCA was sent the proposal from John Sanford on Wednesday 16th May and that too aligns well with club objectives.

RMCA has received a request from RSSA. If any club member is a lawyer with insolvency law knowledge/practice and would like to help, please contact RSSA directly.

Actions and recommendations going forward:

RMCA encourages club committees to communicate with their clubs members to write to the ministers in the list attached to demonstrate the importance of having a ski season this year, both financially for the clubs as well as for the whole region and community.

A template letter is available on the RSSA websitefor clubs to use if desired.

Regards

RMCA Executive Council