Colorado Theme Park Files for Bankruptcy Following $205 Million Wrongful Death Judgment
The operator of a major Colorado amusement park has filed for Chapter 11 bankruptcy protection, less than a year after a jury ordered it to pay over $205 million in a wrongful death case. The tragic incident involved the death of a six-year-old girl on a ride in 2021, which has now led to significant financial repercussions for the business.
Tragic Incident and Legal Aftermath
Wongel Estifanos, aged six, died on September 5, 2021, after falling 110 feet from the Haunted Mine Drop ride at Glenwood Caverns Adventure Park in Glenwood Springs, Colorado. The attraction, which plunges riders down a vertical mine shaft, was immediately closed for several days following the fatal accident. A wrongful death lawsuit was subsequently filed, naming both the park's parent company, Glenwood Caverns Holdings Limited Liability Company, and the ride's manufacturer, Soaring Eagle Incorporated.
Investigations revealed that the tragedy occurred due to a seatbelt error. Two workers operating the ride had not been trained to identify issues with the restraint system. As a result, they failed to notice that Estifanos was sitting on a still-buckled seatbelt and that the system showed an error indicating the belt had not been undone from the previous ride. The young girl was reportedly holding only the seatbelt's tail across her lap when the ride commenced.
Bankruptcy Filing and Park Operations
Glenwood Caverns Holdings submitted its Chapter 11 petition on Monday in the United States Bankruptcy Court in Delaware. This move follows a Garfield County jury's finding that the park was partly responsible for the death. Court records indicated the company had only around $5 million in liability insurance, which is far below the $205 million judgment issued in November 2025.
In a statement this week, Glenwood Caverns confirmed the bankruptcy filing but emphasized that the park will remain open to the public. The Chapter 11 process will allow Glenwood Caverns to continue operating while creating a structured, court-supervised process that ensures fairness and transparency as it pursues reorganization, the company said. Chapter 11 bankruptcy permits a business to keep operating while restructuring its finances and temporarily halts most collection efforts from creditors.
Responses and Future Implications
The park acknowledged the Estifanos family in its statement, expressing recognition of their unimaginable loss. Our decision to pursue Chapter 11 is the most responsible path to stabilize the business, preserve operations and maintain value for the benefit of all parties, the statement added. Park officials assured that daily operations and scheduled events will continue without interruption, aiming to protect the future of the attraction.
At the time of the court-ordered payout, Glenwood Caverns argued that Soaring Eagle had manufactured the ride with a defective restraint system that caused the accident. The park stated it had since worked with independent engineers to redesign and re-engineer the ride to prevent similar incidents. This case highlights critical issues in amusement park safety, training protocols, and liability insurance adequacy in the tourism and entertainment industry.
