When disaster strikes, most people take solace in the fact that they have insurance.

Last summer, for example, I was driving back from a holiday party when my car hit a piece of metal debris on the highway. It flew into the air and smashed through the front of my car, getting stuck next to my front left tire.

It was a bit terrifying, since if it had struck a few feet higher, it likely would have shattered my windshield. Instead, it did some damage to the front of my car, and I pulled into a rest stop, opened my insurance app, and filed a claim.

I drove the car to a mechanic, got dropped at a car rental place, and a week later, picked up my car. My insurance paid the entire nearly $3,000 bill, minus my $500 deductible.

Nothing about the experience was fun, but I was never worried about the cost because I had insurance. But what if that policy had lapsed?

Just as a personal insurance lapse could create major headaches, Whitecap Mountains Resort faced a similar challenge after its lodge fire left it uninsured.

“On January 18, 2019, a chimney fire took out the Whitecap Mountains lodge, which held over 350 brand new rentals, a fully renovated restaurant, and bar. The lodge was a total loss,” UpperMichigan.com reported.

It was a massive expense, and it turned out the resort did not have insurance.

That was something that led to a major lawsuit and ultimately factored into the resort’s recent Chapter 11 bankruptcy filing.

Whitecap v. AXIS Surplus Insurance

  • Whitecap Mountain Recreation, Penokee Skiing LLC, and Penokee Holding LLC sued AXIS Surplus Insurance Co. over insurance coverage for a lodge fire in January 2019.
    Source: Justia Dockets & Filings
  • Whitecap claimed the insurance policy should have automatically renewed under Wisconsin law (Wis. Stat. § 631.36(4)), but AXIS countered that the right doesn’t apply to surplus-lines insurers.
    Source: Casemine
  • The court ruled in favor of AXIS, saying the cancellation was effective and that Whitecap did not have coverage at the time of the fire.
    Source: Casemine
  • Because Whitecap lacked insurance, the cost to rebuild after the fire (about $5 million estimated) would likely have come out of its own pocket or through debt.
    Source: Justia Law
A lack of snow ruined the 2024 season for Whitecap Mountains Resort.

Shutterstock

Whitecap Mountains Resort files Chapter 11 bankruptcy

While it’s primarily a ski resort, Whitecap Mountains resort, which is the operating name of Midwest Skiing Company, LLC, does operate year-round.

“Whitecap Mountains Resort offers year-round family recreation, lodging, and down-home hospitality in Northern Wisconsin. Spread over a vast 400 acres within the ancient Penokee Mountains, it’s the perfect location for a corporate retreat, mountaintop wedding, extended family reunion, or a relaxing getaway,” the resort’s website shared.

The company has faced economic challenges beyond the fire, as the 2024 season was marred by warm weather, Whitecap Mountain Resort owner David Dziuban told local news station TMJ4.

“We were making snow around the clock for seven or eight days in a row and then the warm weather hits. We lost out on our whole Christmas and New Year’s holiday week,” Dziuban said.

The ski resort is not being helped by the current economy.

“Elevated interest rates helped push Chapter 11 bankruptcy filings to their highest level in eight years in 2024, and we expect the high volume of restructurings to continue through the first half of 2025,” shared PWC.

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The warm season led to losses of more than $700,000 and forced the resort to lay off staff.

“It is an economic disaster is what it is,” said Dziuban.

That disaster, coupled with the fire, likely contributed to the company filing for Chapter 11 bankruptcy.

Midwest Skiing Company, LLC bankruptcy:

  • Filed for Chapter 11 bankruptcy on November 19, 2025.
  • Case number is 1:25-bk-12543 in the U.S. Bankruptcy Court, Western District of Wisconsin.
  • Debtor (“Midwest Skiing Company, LLC”) operates under Whitecap Mountains Resort and formerly as Glebe Mountain, Inc.
  • Address listed in the filing: 9106 W. County Road E, Upson, WI, 54565.
  • The filing is voluntary.
  • It is classified as a small business case under the court docket.
  • Assets are estimated in the range of $1,000,001 to $10 million, and liabilities are in the same range.
  • First-day motions filed include:
    A motion to use cash collateral, meaning they may want to keep using their existing cash to operate.

    A motion to pay pre-petition wages, indicating they want to continue paying employees for work done before the bankruptcy.

    A request to maintain the season pass program and to have the company’s processor continue honoring merchant agreements.

  • The company has applied to employ Kerkman & Dunn, S.C. as its Chapter 11 general counsel.
  • The U.S. Trustee assigned to the case is based in Madison, WI.
  • Creditor impacts: Brighton Asset Management LLC has filed a Notice of Appearance.
    Sources: Inforuptcy, Pacer Monitor

The resort continues to operate normally, and it continues to take reservations.