17 June 2023
Hello everyone.
We are receiving feedback from many Life Pass Holders that the online voting form is confusing. This, in some cases, is leading to people who want to support the Pure Tūroa and Whakapapa bids, in fact voting against them.
In the online voting form, to vote to progress the 2 bids, you need to select the 'For' option for question 'B' (where it says 'IT IS RESOLVED THAT THE COMPANY BE PLACED IN LIQUIDATION').
Here's screen shots showing how we're recommending Life Pass Holders action their vote:
The insolvency and bidding process require that Ruapehu Alpine Lifts Ltd be placed into liquidation to then immediately allow for the bids to be accepted by the creditors.
Understandably, most people are not fully across the process. There's a lot of information from PwC and most don't have the time to familiarise themselves with it and the backgrounds of the bidding companies. Additionally there hasn’t been much clear and credible communication around the consequences if the bids fail. We don’t see any way forward for snow sports on Mt Ruapehu if the bids are not accepted and the Crown’s support of the Pure Tūroa bid indicates they agree.
Pure Tūroa Ltd and Whakapapa Holdings Ltd have both been working very hard over the past few months to ready operations for a 2023 winter season opening in July. Both company's bids include a 25% government shareholding ensuring public oversight and benefit.
The RSSA, a group representing Life Pass Holders, is lobbying their members to vote against the 2 bids. They would like to see the bidding process fail and for Ruapehu Alpine Lifts Ltd (RAL) to continue through the year. Unfortunately this is not a realistic option as the government has made it very clear that there will be no further Crown funding available to RAL. The government confirmed in cabinet that it will only support the Pure Tūroa and Whakapapa bids as presenting commercially-viable long-term security for snow sports on Mt Ruapehu.
RAL has historically used Life Passes as a mechanism to raise capital. This worked for a time but our financial modelling shows that that well has run dry. For a commercial company, we don’t see it as sensible to effectively sell your future revenue at a very discounted price for a short-term gain. Pure Tūroa is planning for a long term sustainable business with viable revenues allowing for reinvestment in ongoing upgrades to facilities. We want to build a much better customer experience going forward.
We hope you’ll support us. If you’re a Life Pass Holder, we hope you’ll vote ‘For’ for option ‘B’ to liquidate and enable the new owners to start operations on the 21st June and to open the 2023 season early July.
Thanks
The Pure Tūroa Team
PS: See ‘Raw & Real Snow Reports’ Facebook link explaining the process really nicely…
https://www.facebook.com/100012946410823/videos/262618066454158/
Please also read this page extracted from PwC's creditors report which clearly explains the 3 options for voting.
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