Ruapehu Alpine Lifts (RAL) will receive $6 million from the Government "to support the development of an alternative commercial solution" for the embattled skifield operator, it's been announced.
RAL went into voluntary administration earlier in 2022 after three tough years of COVID-19 and minimal snowfall - which left it with $45 million in debt.
But another $6m of Government funding was announced by Economic Development Minister Stuart Nash in a statement on Wednesday.
"Following discussions with affected stakeholders, including other creditors and iwi, it has become clear that more time is needed to further explore our options to avoid liquidation. This additional funding will allow this to occur," Nash said.
"We will provide $6m to enable alternative solutions to be developed and provide sufficient working capital to retain the RAL management team while a potential resolution continues to be negotiated. This is in addition to the $2 million already extended to RAL from the Crown."
Nash said the $6m would allow RAL to keep staff who were "critical to the maintenance of the assets on the mountain", allowing it to open next season.
"We are fully invested in exploring all options as we recognise the significant detrimental impact on the both the economies and wellbeing of local communities, especially Ohakune."
It would also allow for "considered and robust" decisions to be made about the future of operations on Mt Ruapehu, he said.
Nash's announcement comes despite in October dismissing the idea of giving RAL any additional bank loans from the Government.
ANZ and the Government had already provided short-term relief with a $4 million rescue package to last RAL until this month.
Nevertheless, RAL voluntary administrator John Fisk was thankful for the Government's cash injection.
"We're delighted that the Government's decided to do this," he told Newshub. "It provides time, that we've been saying we need, to prepare the mountain for the '23 season and look at a long-term solution for the business."
Fisk conceded liquidation was likely the only other option if the Government didn't come to the table.
While questions remained about how the business would run going forward, Fisk told Newshub there would be discussions with stakeholders about "how a new company could be set up and operate for the long-term".
The additional funding created that opportunity, he said.
"At the moment, all options are open so we'll be exploring all those avenues to see what can be put together and what we think will be acceptable to the people who are interested in continuing with operations.
"We're going to do our utmost to get a solution here that's better than liquidation."
Meanwhile, Ruapehu Mayor John Kirton thanked Nash for recognising the importance of skiing on Mt Ruapehu for the region's economy.
"Skiing on Mt Ruapehu is too important to the social and economic fabric of the region and New Zealand tourism to be allowed to fail," Kirton said.
While Kirton conceded the cash injection wasn't a long-term solution, he said it was a "much-needed lifeline".
"Council is committed to working alongside Government and other stakeholders to work out a long term commercially viable solution."
The ski fields contribute $100 million to the local economy.
