The Government has announced a further $6 million in funding for Ruapehu Alpine Lifts, on top of the $4 million rescue package it received in November.
It comes after the company went into voluntary administration in October amid a challenging few years due to the Covid-19 pandemic and poor weather conditions.
In October, Economic and Regional Development Minister Stuart Nash denied RAL any more funding, although the Crown assisted in a $4 million rescue package last month to help RAL keep staff over summer.
Today he announced a further $6 million in funding to "to allow time for MBIE through Kanoa-RDU to support the development of an alternative commercial solution".
Nash said in a statement: "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."
He said the decision comes following the survey of life pass holders, which showed support, but fell short of the funding required to support a new entity to operate the ski fields, meaning more time is required to secure funding for a new entity.
“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.
“By providing this bridging finance we will be able to maintain staff who are critical to the maintenance of the assets on the mountain, and enable it to operate next winter."
Nash said he acknowledges the significant impact this has on the community's economy.
“Any decision regarding the future of operations on Mt Ruapehu needs to be considered and robust, but also realistic about the ongoing cost of such operations," he said.