Glenwood Caverns is in an operating chapter 11 posture, with the case presently centered on preserving the amusement park business through peak-season liquidity, managing the Estifanos judgment/appeal overhang, and developing a plan or transaction path rather than pursuing an already-filed sale or confirmed plan. The debtor filed on February 9, 2026, after a $116.1 million tort judgment arising from a September 2021 fatal accident on the Haunted Mine Drop ride created a liquidity crisis: the judgment exceeded the debtor’s $5 million insurance limit, plaintiffs pursued collection activity, and the debtor warned that garnishments could sweep operating accounts and halt the business, while Community Banks of Colorado held roughly $12.7 million of first-lien prepetition debt First Day DeclarationDkt. 10.
At filing, the debtor framed the case as a stabilization proceeding for a seasonal, gondola-accessed Glenwood Springs theme park that generates most revenue from April through October. Its first-day package sought authority to use lender cash collateral under a 13-week budget, pay accrued employee wages and benefits for a 122-person workforce, maintain insurance and utilities, and continue ordinary-course cash management, all aimed at keeping the park operating while the debtor prosecuted its appeal and addressed the judgment-creditor pressure First Day DeclarationDkt. 10. The claim register reflected the capital-stack imbalance driving the case: one secured claim for about $12.7 million and unsecured claims dominated by the tort judgment.
By late April and early May, the docket showed a case moving from first-day stabilization into plan, litigation, and administrative buildout. Debtor’s counsel reported March work on a combined disclosure statement and plan of reorganization, coordination with Hilco on marketing and investment materials, response to Rule 2004 discovery, Estifanos appeal-related tasks, and operational advice on employee safety and background policies . Special counsel’s March fee application focused on Estifanos insurance-coverage issues and proposed settlement structures , while the CRO/financial-advisor staffing report described work on schedules and statements, budget and liquidation analysis, and path-forward planning . Recent service filings also show an active venue fight, including service of the debtor’s objection to transferring venue to Colorado .
