January 20, 2010
A fight between Wall Street financiers could push the company that owns the Whistler Blackcomb ski resort into insolvency and threaten the Vancouver Olympics, a U.S. newspaper report suggests.
According to a story in the New York Post, creditors who have loaned $1.4-billion USD to the ski resort’s owners, Intrawest ULC, are threatening to foreclose on the company and effectively seize control of the resort.
Among numerous ski resorts in Canada and the U.S., Intrawest owns the Whistler Blackcomb resort, which is set to host major ski events at the Winter Olympic Games next month.
In 2006, Wall Street hedge fund Fortress Investments LLC bought Intrawest in a $2.8-billion USD deal. Fortress recently missed a $524-million debt payment connected to that purchase.
The primary lender on the Intrawest deal in 2006 was defunct investment bank Lehman Brothers. According to the Post report, the creditors have rejected Fortress’s repayment proposal and may be moving to foreclose on the company within 10 days.
For more, visit The National Post’s site
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