Intrawest to sell Panorama ski resort
Last Updated: Thursday, January 28, 2010 | 05:55 PM EST
Financial Post
In a last-ditch attempt to stave off foreclosure at the hands of creditors, Intrawest ULC agreed on Thursday to sell its Panorama Mountain Village resort to a group of locals and business owners led by a former town mayor.
The proposed sale has the newly formed Panorama Mountain Village Inc. taking over control of the resort's on-mountain ski operations, gaining a 50% stake in the Greywolf Golf Course, all of Intrawest's commercial operations and lodgings in the village and any land available for development.
The new company is made up of a group of 18 area homeowners and local businesspeople, led by real estate developer Rick Jensen, who served as mayor of Cranbrook, B.C. In the ‘80s.
"The selling price was fair to both sides. We started negotiating in October, and had concluded values in December," he said.
Mr. Jensen, who will be chief executive of the new company, said roughly half of the purchase price was financed while the other half was cash. He could not reveal any other financial details.
The homeowners included doctors and accountants from as far away as Ireland and Bermuda, he said.
The transaction is expected to close in February 2010.
Panorama Mountain Village is on the B.C. side of the Rocky Mountains, about two hours outside of Banff.
"Intrawest and Panorama Inc. have committed to work together to ensure a smooth transition of ownership and all vacation reservations, season pass and card products will be honoured for the 2009-2010 season," the companies said in a release.
Intrawest, which operates well-known ski resorts such as Whistler in B.C. and Blue Mountain in Ontario, has been embroiled in a very public spat with creditors over a missed payment on a US$1.4-billion loan.
A group of U.S. hedge funds plans to auction off Intrawest and its various assets, including its prized Whistler site, in February.
Intrawest owner Fortress Investment Group of New York told the Financial Post earlier this month it was in "serious discussions" with creditors for refinancing.
The Whistler ski resort is a primary competition site in the coming Vancouver Winter Olympic Games, and there are concerns a potential sale will wreak havoc on the event.
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