Intrawest may miss debt payment: report

Wednesday, December 23, 2009 CBC news:

Bloomberg said Intrawest may not be able to make a $524 million US payment due Wednesday and is in talks with lenders about easing its debt repayment options. The report did not disclose its sources but described them as having direct knowledge of the matter.

Bloomberg reported Wednesday that Vancouver-based ski resort operator Intrawest ULC may default on a $1.4 billion US loan. The company operates some of the 2010 Winter Olympics venues in British Columbia, but the report said the Games will not be affected by a missed loan payment. The resort operator negotiated a 60-day extension on its debt on Oct. 23. Intrawest — owned by private equity firm Fortress Investment Group LLC of New York — said in a statement it was current on all its obligations as of Tuesday "and we are in active dialogue with our lenders regarding refinancing a term loan." Fortress — which manages $32 billion US in hedge funds and other assets — bought Intrawest for $2.8 billion US in 2006, using $1.7 billion in borrowed money. It scrambled to refinance that loan, which is held by Intrawest, after the financial meltdown hit last year. In November, Intrawest reached a deal to sell its Copper Mountain resort in Colorado to U.S. resort operator Powdr Corp. The price was not disclosed. Earlier in the year, Intrawest sold two of its resorts in France to Pierre et Vacances. That price was also not revealed.