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Intrawest future unclear
Monday January 25, 2010 - Email this article to a friend
The company has been in difficulties for sometime but now it appears it has had its assets seized. Including the ski resort of Whistler/Blackcomb that is hosting many of the skiing and snowboarding events at next month's Winter Olympics.
Intrawest, once the world's leading ski resort operator and still owner of nine major ski areas 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 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.
That is while the Olympic Games are taking place.
The group was bought for $2.8 billion at the height of the property boom in 2006.
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 nor the Canadian government have made any official comment.
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.
It had interests in some European resorts but they have now been sold, as we reported earlier on PlanetSKI, and we reported worries about its financial position last year.
Reporting by Patrick Thorne at Snow24.
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