How much did that new interconnect lift at Whistler cost?
From Financial Times today... they own Stratton... just the continuing saga of financial companies that own ski areas..
"Fortress Investment Group, a listed alternative investor with $40bn under management, is taking action aimed at keeping two of the companies it owns afloat, according to people familiar with the situation.
Fortress’s difficulties will be followed in the troubled financial world because they herald similar problems for other private equity firms and hedge funds.
Fortress is battling to preserve the value of its investments in Intrawest, a ski resort company based in Canada that has $1.68bn in debt due on October 23, and Gagfah, a German residential real estate group that is seeking to raise additional equity to comply with the terms of its debt.
Fortress controls Intrawest via a $1.37bn equity stake. With Intrawest’s debt trading at less than 70 cents on the dollar, Fortress has approached potential and existing lenders to discuss a refinancing involving $1.4bn in senior debt. Fortress is putting in $100m of additional capital to preserve its equity’s value. Talks will be tricky since any member of the lending group can veto a deal. On October 14, lawyers for the bank group at Cadwalader Wickersham & Taft sent a note to creditors saying “the ability of the borrowers to achieve [100 per cent] consent is suspect”.
People familiar with Fortress, which operates hedge funds and private equity vehicles, say there is a low probability Intrawest will file for Chapter 11 bankruptcy protection. A letter sent to investors on October 3 said: “We are engaged in constructive discussions with the balance of the lending group.”
The Intrawest talks are complicated by the fact that a Fortress unit called Drawbridge owns debt in Intrawest. That could create a conflict of interest, since Drawbridge is obliged to cut the best deal for debt investors and Fortress obliged to fight for shareholders. But according to a person familiar with Fortress, the Drawbridge investment is so small it should not be a problem.
How much did that new interconnect lift at Whistler cost?
www.firstlightphotographics.com
Sugarbusher since 1970
Skiing is a dance, and the mountain always leads.
That's not the issue nor is the cash flow. They didn't lock in the debt they used for the purchase. They used short term debt and are now forced to refinance in a horrible environment.Originally Posted by ski_resort_observer
Wow, I recently read that it cost 50m, that's a chunk of change.
www.firstlightphotographics.com
Sugarbusher since 1970
Skiing is a dance, and the mountain always leads.
FYI From a note sent to me today, purely a rumor, can anyone confirm?...
Employees at Intrawest, the troubled ski resort operator owned by Fortress Investment Group, are gathering for an all-employee meeting today, according to a tipster familiar with the matter. The gathering could be a prelude to a bankruptcy announcement by Intrawest.
This morning, the New York Post reported that the Fortress Investment Group, the once high-flying and troubled alternative-investment firm that had to halt its quarterly dividend last month to conserve cash, may be be forced to arrange a bankruptcy for Intrawest. The immediate cause of the potential bankruptcy: some lenders are refusing to refinance the $1.7 billion of debt Fortress used to buy the Intrawest just two years ago.
Word of an all employee meeting seems to indicate that the company is preparing for a bankruptcy. Of course, it is still possible that a last minute deal with lenders could rescue the Intrawest.
A bankruptcy would be a major blow to Fortress. Intrawest represents 10 percent of Fortress’ $17 billion private-equity portfolio. Part of the problem seems to be that now bankrupt Lehman Brothers was one of the lenders in the Intrawest deal....
Well, looks like they're good to go for now.
Originally Posted by Ski Area Management Magazine
Bookmarks