Intrawest Future Unclear
Intrawest Future Unclear
Published : 25-Jan-2010 02:19
Intrawest, once the world's leading ski resort operator and still owner of nine major ski areas including next month's Olympic host Whistler Blackcomb has had its "assets seized" by lenders after it reportedly failed to make repayments on a $1.4 billion loan at the end of last year.Lenders backing Intrawest, which is owned by a private equity firm Fortress Investment Group, which purchased the company for $2.8 billion at the height of the property boom in 2006, said in a notice published in major newspapers on Wednesday that they planned to sell off their ownership share in the company on February 19th, coincidentally in the middle of the Olympics.
Exactly how far the sale of assets threatens resort operations and Intrawest's overall ownership remains unclear. In the newspaper notice the asset lists two Canadian ski resorts, specifically Whistler and Blackcomb.
In a statement Intrawest said, "There have been inaccurate and misleading media reports surrounding the company. Fortress Investment Group continues to own and control Intrawest and all of its properties. Serious discussions with Intrawest's lenders are ongoing regarding refinancing and the company continues to operate 'business as usual' at all of its resort properties."
Some of the media reports Intrawest may be referring to include suggestions that the Olympic Games themselves may be in danger, but this has been rejected by Intrawest,
"We have a 2002 agreement with VANOC (The Vancouver Organising Committee) to host the Winter Olympics and have every confidence that VANOC will honour its financial commitments," said Intrawest CEO Bill Jensen. "Intrawest is looking forward to a successful Olympic Games."
Neither the banks involved in the loan to Intrawest not the Canadian government have made any official comment.
In another piece of bad news for the coming Olympics, snowboard venue Cypress Mountain is still suffering from warm weather and rain, organisers are now considering helicoptering in some snow.
Along with Whistler Blackcomb, Intrawest also own Panorama in British Columbia and on Canada's East Coast the resorts of Blue Mountain in Ontario and Mont Tremblant in Quebec. In the US Intrawest operate Steamboat and Winter Park in Colorado, Snowshoe in West Virginia, Stratton in Vermont and Mountain High in New Jersey.
Courtesy of and © Snow24 plc
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