Intrawest ULC Avoids Auction

Wednesday, 10 March 2010 12:47

VANCOUVER — The auction of the Whistler Blackcomb ski resort and other Intrawest ULC properties has been postponed after its owner, Fortress Investment Group, reached an agreement in principle with creditors to restructure its debt.

The Wall Street Journal reported that Fortress will invest an additional US$150 million of equity into the business to pay down debt and retain control of the resort company.

Intrawest was scheduled for the auction block last Monday, having avoided the hammer originally set to fall Feb. 19. The Journal reported that a new $1.2-billion loan package will extend debt maturities by as long as four years and will charge a higher interest rate than for existing debt.

The deal is expected to close within the next month.