Fortress Seeks Financing for Whistler Blackcomb
The Intrawest ski resort company has $1.68 billion in debt due Oct. 23, and the company’s owner, New York-based Fortress Investment Group, is struggling to rearrange financing to keep the operation afloat, according to a report published in the Financial Times on Friday.
Intrawest owns 10 ski operations and about 15 vacation resorts around North America, including Mont Tremblant in Quebec, Blue Mountain in Ontario, Panorama in British Columbia and two heli-skiing operations.
New York-based Fortress controls Intrawest via a $1.37-billion equity stake that it bought two years ago. People familiar with Fortress say there is a low probability Intrawest will file for Chapter 11 bankruptcy protection, the Financial Times reported.
With Intrawest’s debt trading at less than 70 cents on the dollar, Fortress has approached potential and existing lenders to discuss refinancing involving $1.4 billion in debt, the newspaper reported.
Founded in 1998, Fortress went public in February 2007 at $18.50 per share, in the first initial public offering by a U.S. private equity and hedge fund manager. Its shares closed at $5.50 on Thursday.
Fortress Credit Corporation (a subsidiary) also holds a $750 million mortgage at the Southeast False Creek Olympic Village, which is more than $60 million over-budget.
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Filed under: 2010 Olympics, Condos, Developments, Interest Rates, Luxury Real Estate, Recreational Property, Vancovuer Projects, Waterfront Properties, false creek, whistler