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.
