MADISON, Wis.–(BUSINESS WIRE)–Great Wolf Resorts, Inc.® (NASDAQ: WOLF), North America’s largest family of indoor waterpark resorts, today announced that it has completed the sale of its Blue Harbor Resort in Sheboygan, Wisconsin. The 182-room resort has been sold to Claremont New Frontier Resort LLC for $4.2 million.
“The sale of the Blue Harbor Resort is another step in the execution of our strategy to increase our financial flexibility and to focus our efforts on expanding our company through management and licensing arrangements rather than direct ownership of real estate,” said Kim Schaefer, Chief Executive Officer of Great Wolf Resorts. “We remain focused on unlocking the full value potential in our Great Wolf Lodge® brand and our range of proprietary amenities. Just as importantly, we have further improved our balance sheet and liquidity position by eliminating nearly $12 million of debt.”As part of the sales transaction, Great Wolf Resorts has also made a payment of $2.5 million to the City of Sheboygan. This payment relieves the company of all obligations under the terms of its original agreements with the City, consisting of minimum guaranteed amounts of room tax payments to be made through 2028, and real and personal property tax payments to be made through 2018. The carrying value of the liabilities associated with those minimum payment obligations was $11.6 million as of December 31, 2010.