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'Working Toward A Solution' Says Intrawest As 11th Hour Approaches In Fortress Quagmire

By Craig Altschul
October 23, 2008

Ian Galbraith (V), Intrawest Director of Corporate Communications and Media Relations told The Industry Report this afternoon that [the company] "is working towards a solution. I will keep you informed." We will keep you informed as news breaks on this story.

The clock is ticking. Intrawest has $1.68 billion in debt due today (Oct. 23, 2008). It is a possibility that Fortress Group International, which acquired Canada-based Intrawest two years ago, may have to arrange for Intrawest's bankruptcy. News reports earlier in the week hinted that alternative, however, was unlikely.

A report in the New York Post this morning hinted Fortress could be forced to "chip in about $200 million to help Intrawest."

Vancouver officials were carefully watching events turn as Fortress has provided a $750 million loan to Millennium Developments, a local company building the Olympic athletes village for the 2010 Winter Olympics. The Globe and Mail reported today that Ken Bayne, Vancouver's general manager of business planning, said Fortress officials have assured the city that "the athletes village is on track, despite news media stories about its other financial issues."

Background in a nutshell: Fortress Investment Group, according to the Financial Times, is a listed alternative investor with $40 billion under management. The company controls Intrawest with a $1.3 billion equity stake. They acquired the company in 2006.

The New York Post reported in today's editions that "the problems with Intrawest couldn't come at a worse time for Fortress, which has also been tackling problems with its $18 billion hedge-fund business." The Post noted Fortress' shares have sunk 80 percent so far this year and dropped by more than 17 percent yesterday (Oct. 22, 2008) to $3.90.

"Sources told The Post that while a majority of the lenders behind the $1.7 billion in debt that Fortress used to acquire Vancouver-based Intrawest support a restructuring of the debt, a handful are resisting amid the protracted credit crisis. In order to moved forward with a restructuring, all lenders would have to agree to the plan, sources said."

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Comments

	Couldn't have happened happened to a nicer orgainization. Booya!!!
	Posted by: Irving Schtump Ski Irv | October 23, 2008 03:27 PM