Scranton, PA – One of Pennsylvania’s largest ski resorts has been scheduled for a sheriff’s auction next month.

Lenders that provided financing for Snö Mountain ski resort and the associated Snö Cove water park in Scranton foreclosed on the property in March, and a sheriff’s auction has been scheduled for July 17. The potential sale is the latest financial woe for the for the 1,000 vertical-foot ski resort, which defaulted on a $5 million state loan in November and had its power cut off by the local utility company for three weeks in October.

National Penn Bank says that it’s owed over $6.6 million in principal on a $7.5 million mortage that was first signed in 2009 and renegotiated in 2010. The resort also owes over $700,000 in back taxes and penalties from 2009, 2010 and 2011.

The Snö Cove water park is open this week at the resort, and its general manager told the Scranton Times Tribune that a pending new restructuring of its debt will avoid the July 17 auction. If the auction goes forward as scheduled, any buyer will have to assume the resort’s liabilities. If no buyer is found at the sheriff’s auction a judicial sale will be held in February free and clear of any existing debts.

Founded in 1984 by Lackawanna County as Montage Mountain, the ski area was renamed Snö Mountain in 2006. One quad chair, three triples, one double and two carpet lifts provide the uphill transport at the 389-acre resort. Its lodge sits in an unusual mid-mountain location with easier skiing on the mountain’s upper half and more challenging terrain below.