Dec 26, 2009

 

Intrawest Resorts Edge Closer To Bankruptcy

 

Intrawest may be hosting the Olympic ski competition at their Whistler-Blackcomb resort, but in another sign that a tie-in with the Olympics is not a ticket to financial success, they are faced a massive debt payment they apparently cannot mjke.

Bloomberg News reported early Wednesday that Intrawest's owner Fortress Investment Group LLC, was negotiating with lenders who helped finance Fortress's $1.8 billion acquisiton of the resort company in August. 2006. Bloomberg said Intrawest could be pushed "nearer to default if it fails to make the $524-million payment."

Flagging sales of real estate at Intrawest resorts have hurt Intrawest earnings since its acquisition.

The ski industry is now, and always has been, about the real estate business. The sporting life is the magnet that draws people to the resort, but the property holdings are the payoff. Remember the next time ski area management pleads poverty that it's not about the price of a lift ticket.

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