Whistler – The New York-based hedge fund firm that owns Intrawest, the parent company for Whistler Blackcomb, is taking action to keep two of its companies — Intrawest and the German residual real estate firm Gagfah — afloat, the Financial Times reported this week.
Vancouver-based Intrawest has $1.68 billion in debt due on Thursday (Oct. 23), and Fortress Investment Group LLC — the company that purchased control of Intrawest two years ago via a $1.37 billion equity stake — is struggling to preserve the value of its investments in the company, the Times reported on Friday (Oct. 17).
People said to be “familiar with Fortress” were reported to have said that there is a low probability of Intrawest filing for Chapter 11 bankruptcy protection as a result of the situation. The London-based publication also quoted a portion of a letter sent to Fortress investors. In part, the letter said, “We are engaged in constructive discussions with the balance of the lending group.”
Fortress officials were not immediately available for comment, the article stated.
With Intrawest’s debt trading at less than 70 cents on the dollar, Fortress officials have approached potential and existing lenders about a possible refinancing involving $1.4 billion in senior debt, the Times reported.
I think that if we taxpayers are going to be responsible for Whistler's Athlete's Village debt because of this , we should seriously be re-considering the effectiveness of our senior municipal staff and the worthiness of their rediculously high salaries - we need to start trimming the fat!
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October 21, 2008 @ 11:24 am PST