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The owner of Colorado’s mountaintop amusement destination has sought bankruptcy protection, saying it cannot shoulder the weight of a nine-figure wrongful death verdict.

Glenwood Caverns Holdings LLC filed for Chapter 11 in Delaware bankruptcy court on Monday — the same day a noncollection “standstill” agreement expired with the parents of a 6-year-old girl whose 2021 death on a park ride led to a massive court judgment.

A Mountain Park Under Financial Strain

Perched 7,100 feet above sea level, Glenwood Caverns Adventure Park opened in 1999 with guided cave tours atop Iron Mountain before expanding in 2005 to include roller coasters and other thrill rides. According to court filings, it is the only theme park in the United States situated on top of a mountain.

The park was acquired in 2020 by Glenwood Caverns Holdings LLC, which is owned by nondebtor GCAP HoldCo LLC.

In a declaration submitted Monday, Chief Restructuring Officer Paul Maniscalco said the business generates between $14 million and $16 million in annual gross revenue. But the park operates in the black only from April through October, relying heavily on seasonal tourism. To keep visitors returning, the park historically introduced a new attraction every few years — a costly cycle that became harder to sustain after tragedy struck.

Since the fatal accident, the company has struggled to secure new capital, according to the filing.

The Verdict That Shook the Park

In September 2025, a jury found Glenwood Caverns liable for both noneconomic and punitive damages stemming from the death of Wongel Estifanos, who fell more than 100 feet on the Haunted Mine Drop ride on Sept. 5, 2021.

Court records show the 6-year-old was not properly secured before the ride began. The case, initially filed in Denver District Court and later transferred to Garfield County Court, culminated in a sweeping verdict.

Jurors awarded $82 million in noneconomic damages, most of which was apportioned between Glenwood Caverns and Soaring Eagle Inc., the ride’s manufacturer and designer. They also imposed $123 million in punitive damages solely against Glenwood Caverns. A Colorado state court entered final judgment in November 2025.

The total judgment cited in bankruptcy filings stands at $116 million.

At the time of the verdict, Glenwood Caverns said responsibility for the child’s death should rest entirely with Soaring Eagle, not the park. In Monday’s declaration, the debtor said it intends to appeal, asserting the Colorado court committed what it described as a “reversible error.”

Insurance Limits and Loan Default

The financial blow far exceeded what the park could absorb. According to Maniscalco’s declaration, the judgment surpassed the $5 million cap on Glenwood’s insurance coverage.

The ruling also triggered a default under agreements with its senior secured lender, Community Banks of Colorado, compounding the park’s financial distress.

Following entry of the judgment, Glenwood provided financial disclosures to Wongel Estifanos’ parents in an effort to demonstrate its inability to pay. The sides entered into a series of agreements under which the family refrained from pursuing collection while settlement discussions continued.

Those negotiations ultimately collapsed without resolution, Maniscalco said. The standstill agreement expired Monday — the same day the Chapter 11 petition was filed.

Bankruptcy Proceedings Begin

The case has been assigned to U.S. Bankruptcy Judge Laurie Selber Silberstein in Delaware.

Glenwood Caverns Holdings LLC is represented by William A. Hazeltine of Sullivan Nimeroff Brown Hill LLC.

As steel tracks cling to Iron Mountain’s cliffs and caves echo with decades of tourism, the park now faces a different kind of descent — into a legal and financial restructuring that will determine whether it can survive the steepest drop in its history.