Creditors Foreclose On Intrawest

Creditors have foreclosed on Intrawest and are auctioning off equity in the company on February 19, 2010, according to a story in The Globe & Mail.

Banks have seized Intrawest Holdings, the owner of the Whistler ski resort that’s hosting the Olympic downhill races next month, after the resort operator missed a big debt payment, and now plan to auction the company off right in the middle of the games. . . Intrawest’s owner, Fortress Investment Group, lost control after missing a big interest payment to its lenders. The lenders, which include Lehman Brothers and Davidson Kempner, plan to auction off ownership of Intrawest on Feb. 19, according to a notice published in major newspapers. The first events of the games are scheduled for Feb. 12 and the closing ceremony is set for Feb. 28.

[Editors’ note: The following was our original post from earlier today] Investors who have loaned Intrawest close to $1.4 billion dollars say they may foreclose on the resort operator next week according to a story in the New York Post.

Sources tell The Post that creditors holding $1.4 billion of debt on Whistler owner Intrawest are planning to foreclose on the company within the next week and a half, casting a shadow on the resort, which will host the alpine events of the 2010 Olympics. “It will probably happen within 10 days,” a source said. . . The showdown comes amid an impasse between the estate of fallen investment bank Lehman Brothers, Intrawest’s largest creditor, and Intrawest owner Fortress Investment Group, the publicly traded hedge fund run by Wesley Edens. . . By forcing Intrawest into bankruptcy, Lehman and other creditors could raise several billion dollars repossessing Intrawest and selling off its various resorts.

Luckily, all the snowboard events are taking place at Cypress Mountain. . . where last week they closed because there is no snow. But not to worry. They still have 23 days to load up.

[Globe & Mail Update: Creditors have foreclosed on Intrawest (Thanks, Skin)]

[BusinessWeek Update: Creditors to auction off Equity in Intrawest Resorts on February 19, 2010]

[Link: New York Post]