The Whistler-Blackcomb ski resort could be auctioned off next month in the midst of hosting the Winter Olympic Games as part of foreclosure proceedings against the hedge fund that bought its parent company.
A trustee appointed by creditors of New York-based private equity and hedge fund Fortress Investment Group, LLC announced the auction would be held Feb. 19 in ads that ran in the Wall Street Journal and other papers. Last fall, Fortress failed to make the final payment on a $1.4-billion loan used to buy Canadian-based resort operator Intrawest. Intrawest has sold Copper Mountain in Colorado as well as two resorts in France to raise cash.
Analysts said the foreclosure notice was a standard negotiating tactic and Intrawest dispelled reports that its assets had been seized. “Fortress Investment Group continues to own and control Intrawest and all of its properties,” read a statement released by Intrawest Jan. 20. “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. Intrawest is looking forward to the success of the 2010 Olympic and Paralympic Winter Games.”
Media quoted members of the Olympic Games Organizing Committee as saying alpine events would be held at Whistler-Blackcomb as scheduled regardless. It remained unclear Friday whether Fortress’ loan agreement forbid it or Intrawest from filing bankruptcy to protect their assets from creditors.
