Copper Mountain Resort in ColoradoJACK AFFLECK
There's a report that ski resort giant Intrawest ULC may default on a $1.4-billion loan and is in talks with lenders about debt repayment options.
According to a report from Bloomberg that cited unidentified sources with direct knowledge of the matter, Intrawest may be pushed closer to default if it fails to make a $524-million (U.S.) payment due Wednesday.
The report said Intrawest had issued as statement saying it was current on all its obligations as of Tuesday "and we are in active dialogue with our lenders regarding refinancing a term loan."
The Vancouver-based company which operates some 2010 Winter Olympics venues in British Columbia, is owned by private equity firm Fortress Investment Group LLC of New York.
The February Olympic games will not be affected by a missed loan payment, the report said.
Intrawest has been struggling financially since it was bought in 2006 by New York-based Fortress for $2.8-billion in cash and debt.
The deal was a leveraged buyout with a $1.7-billion loan which came due last fall, when the financial meltdown hit.
Fortress scrambled to refinance the loan after Intrawest, which holds the debt, was pushed to the brink of creditor protection.
In November Intrawest said it agreed to sell one of its resorts at Copper Mountain, Colo., to American mountain resort company Powdr Corp. for an undisclosed amount.
Earlier in the year, Intrawest sold two of its resorts in France to holiday company Pierre et Vacances. That price was also not disclosed.