Living in a resort community a substantial part of the economy is driven by tourism and the success of Steamboat Ski and Resort. News came yesterday that a public notice of foreclosure was posted by Intrawest’s lenders, stating the auction to sell Intrawest’s assets will be held on February 19th. Whether this will proceed according to the lender’s notice, will only be told in the coming weeks. Intrawest is the current owner of Steamboat Ski and Resort.
The Lehman Brothers along with Kempner Capital Management are Intrawest’s primary creditors. After Intrawest missed the latest payment of $524 million, on a $1.4 billion loan, the lenders posted the threat of auction. Intrawest’s owner, Fortress Investment Group, stated yesterday that they continue to own and control Intrawest and all of its properties at this time. ‘Intrawest spokesman Ian Galbraith said no company assets have been seized, and it’s business as usual for the Games. Galbraith called the notice of auction…a standard practice by lenders during refinancing discussions.’
The New York Post reports that ‘by forcing Intrawest into bankruptcy, Lehman and other creditors could raise several billion dollars repossessing Intrawest and selling off its various resorts.’ Another possible scenario is Galbraith’s explanation, that the lenders are using the Olympics as a means of grabbing more attention to the situation, increasing the pressure on Intrawest for the most recent missed payment.
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