by The Editors on October 5, 2010
Thanks to $1.4 billion in dept Fortress Investment Group LLC has been looking for buyers for their Intrawest properties almost since buying the company in August of 2006.
The sales most often spoken about is Whistler Blackcomb (which was nearly auctioned off by creditors during the 2010 Olympics). There were rumors from the Wall Street Journal regarding the attempted sale to Russian billionaire Vladimir Potanin, and another included “oil mogul” Murray Edwards (owner of Fernie Alpine Resort, Kimberley Alpine Resort, Stoneham Mountain Resort and Mont-Sainte-Anne), but none of them were interested in paying what Fortress believes the mountain is worth. Now Fortress is reportedly trying to take the resort public through an IPO, according to a story in The Globe & Mail.
But the well-known name of Whistler may be an easier sell for an audience of retail investors, especially after the successful Olympics at the site last winter. As a result, an IPO is now the favoured option, sources said. . . “They didn’t like the valuations they got [from other buyers] so they will try the IPO market,” said a second person familiar with the situation.
When you can’t get smart money might as well go retail, but It’s difficult to imagine a scenario where this turns out well no matter how sexy Canadian resorts are.
[Link: The Globe & Mail]
by The Editors on February 1, 2010
Fortress Investment Group, the parent company of Whistler-Blackcomb owner Intrawest, is reportedly trying to fight off foreclosure by offering cash to lenders, according to sources quoted in the New York Post. On top of that, they’re trying to get $90 million which they say the Canadian government owes them.
Fortress says it is negotiating with the Canadian government, which it says promised to make it whole for the time Whistler/Blackcomb mountain is used for the Olympics. Intrawest is trying to get roughly $90 million, and wants to be paid before the Games start on Feb. 12, a source said. . . If it does not get paid, Fortress plans to start legal proceedings, the source added. It is unclear if that could disrupt the Winter Olympics.
It appears that even the Winter Olympics have some high hurdle events.
[Link: New York Post]
by The Editors on April 24, 2009
Whistler Blackcomb’s President and COO Dave Brownlie says that while he can’t comment on Intrawest or its owner Fortress Investment Group, LLC and how the companies are going to solve their $1.7 billion debt crisis, he doesn’t think Whistler Blackcomb will be sold, according to a story in Pique News Magazine.
“I can say that Whistler Blackcomb is seen as a core asset to the success of Intrawest,” said Dave Brownlie on Tuesday afternoon. . . “As a result, I am very confident that Whistler Blackcomb is not up for sale at this time.”
Sounds like something we’ve heard from more than a few CEOs on the eve of a sale.
[Link: Pique News Magazine]
by The Editors on November 2, 2010
Whistler Blackcomb Resort’s planned IPO doesn’t seem to be offering up much help lately. Fortress Investment Group LLC cut the offered share price for a second time in one week, according to a story on Bloomberg.
Whistler Blackcomb aims to sell shares for C$12 each, with a dividend yield of 8.12 percent, according to the people, who asked not to be identified because the plans aren’t public. The company previously cut its price range from C$14 to C$15 a share down to C$12.50 and C$13 apiece.
Not really sure lowering the price on buying into a debt-ridden resort will make it look any more attractive, but what else can they do?
[Link: Bloomberg]
by The Editors on June 22, 2010
The Wall Street Journal is reporting today that Fortress Investment Group, LLC, the parent company of Whistler-Blackcomb resort has reportedly been speaking with Russian billionaire Vladimir Potanin about his purchasing the resort.
Mr. Potanin, the main shareholder of metals giant OAO Norlisk Nickel, has expressed an interest in the property. His investment vehicle, Interros Co., is currently building a new ski resort in Sochi, Russia, home of the 2014 Winter Olympic Games.
The best buyer would probably be a company with little knowledge of the economics of North American ski resorts, because really, who else would want it?
[Link: Wall Street Journal via CKNW.com]
by The Editors on April 28, 2010
Whistler-Blackcomb resort owner Intrawest (and its parent company Fortress Investment Group) has apparently swung successfully on the finance monkey bars once again and found a lender willing to not only pay off all their old loans, but also give them another four years to come up with $1.7 billion, according to a story on Reuters.
Details of the new loan were not released, but Intrawest, a unit of Fortress Investment Group (FIG.N), said on Tuesday that all prior lenders had been repaid in full and the new loan does not mature until 2014. . . Intrawest had been negotiating with lenders to refinance the $1.7 billion in debt taken on when Fortress purchased it in 2006. The earlier loans had been due in December.
Sounds like someone has a little more confidence than we do in Intrawest’s ability to turn resort real estate into cold hard cash. Hope there are some buyers, because they’re definitely not going to make up $1.7 billion with lift tickets and green fees.
[Link: Reuters]
by The Editors on March 1, 2010
According to a story in the Wall Street Journal Intrawest owner Fortress Investments LLC has reached an agreement with creditors to restructure its $1.4 billion debt and will not be auctioning off equity today.
The Wall Street Journal reports that the new deal will allow Intrawest owner Fortress to inject an additional $150 million of equity into the business to pay down debt and retain control of the resort company. . . The report also indicates a new $1.2-billion loan package will extend debt maturities by as long as four years and will charge a higher rate of interest than existing debt.
If you subscribe to the WSJ you can read all the details.
[Link: Wall Street Journal and Canadian Business]
by The Editors on February 18, 2010
Whistler-Blackcomb Resort’s uber-owner Fortress Investment Group LLC has been given an extension on the Intrawest asset action that was supposed to take place tomorrow February 19, 2010, according to a story on Bloomberg.com.
Creditors including the estate of collapsed bank Lehman Brothers Holdings Inc., who have sought control of Intrawest since it missed a final payment in December on a $1.4 billion loan, agreed to extend the deadline for the auction until Feb. 26, according to the person, who declined to be identified because terms are private.
Nice of them not to dirty up the Olympic proceedings with some financial realities isn’t it?
[Link: Bloomberg]
by The Editors on January 20, 2010
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]
by The Editors on December 23, 2009
December 23, 2009 is a big day for Whistler-Blackcomb Resort owning Intrawest ULC and its parent Fortress Investment Group LLC. A reported $524 million payment on a $1.4 billion loan is due, according to a story in Businessweek. And they may not be able to make the payment.
Intrawest, which owns venues being used at the 2010 Winter Olympics, may be pushed nearer to default if it fails to make the $524 million payment after getting a 60-day extension on Oct. 23, according to the people, who asked not to identified because the loan terms are private.
But not to worry, Dave Cobb, deputy chief executive officer for the Vancouver Organizing Committee for the 2010 Winter Olympic Games says everything is fine. “Our venues are finished, preparations are nearly complete and we look forward to welcoming the world to Vancouver.”
Maybe Intrawest owner Fortress Investment Group LLC should just put tip jars all around during the Olympics and ask visitors to pitch in. That might help.
[Link: Businessweek]
Thanks to $1.4 billion in dept Fortress Investment Group LLC has been looking for buyers for their Intrawest properties almost since buying the company in August of 2006. 
