Chinese investors say Reed Hastings owes $76M for Powder Mountain deal

Powder Mountain Ski Resort, Utah. Photo: Photo: Ian Matteson

EDEN, Utah – A group of Chinese investors who funded Utah’s Powder Mountain resort through a federal green card program is suing Netflix cofounder Reed Hastings, claiming they are owed nearly $76 million.

A report published by the Salt Lake Tribune on July, 22 said the money stems from a loan of up to $120 million made in 2016 to the resort’s previous owners, Summit Mountain Holdings, through the EB-5 Immigrant Investor Program, which grants U.S. green cards in exchange for investment in American businesses. The funds were intended to transform the Eden-area resort into a luxury, eco-conscious destination.

When Hastings became the resort’s majority owner in 2023 with a $100 million investment, the loan was only partially repaid. The foreign investment group, made up largely of Chinese nationals, had already sued Summit Mountain Holdings; now they’ve taken legal action against Hastings personally in New York state court, arguing he inherited the financial obligations when taking over the resort. The lawsuit, filed in Manhattan Supreme Court in April was first reported on by The Real Deal.

Hastings previously called the outstanding debt a “modest amount” and said he hoped to reach a settlement, according to the SLT. His company has reportedly made recent cash offers that were rejected, but says it remains open to negotiations. If talks fail, the investors may pursue foreclosure on the resort’s property.