Sports

Intrawest Foreclosure Could Hurt Olympics, Close Whistler

by Michael Small | February 1, 2010 at 03:27 pm

1403 views | 32 Recommendations | 4 comments

Intrawest's impending foreclosure could mean real problems for the Olympics. Intrawest, owner of Olympics venue Whistler Blackcomb ski resort, owes $1.4 billion dollars, and unless that debt is paid, creditors may foreclose on the company.

The foreclosure could come within the next 10 days, which could significantly affect the 2010 Olympic Winter Games since Whistler is the Official Alpine Skiing venue.

Intrawest is owned by Fortress Investment Group, run by Wesley Edens. Edens is battling a war on two fronts. First, his biggest creditor is the troubled bank Lehmans Brothers. By forcing Intrawest into bankruptcy, Lehman could earn several billion dollars repossessing Intrawest.

On the other side, Edens is battling with the government of Canada, whose reputation is on the line during the Olympics.

The Vancouver Olympic Committee (Vanoc) guaranteed that it would make Intrawest whole for the time that its events take place at its resorts. But now, according to a source, Canadian officials are threatening to pull that roughly $50 million guarantee. That, the source said, has compelled Edens to privately say he has a legal right to keep the Games from taking place at Whistler.

In public, Intrawest is putting pressure on VANOC, with CEO Bill Jenson saying "We have a 2002 agreement with VANOC to host the Winter Olympics and have every confidence that Vanoc will honor its financial commitments."

If Whistler Blackcomb is closed, it would throw a major wrench in Olympic planning, so expect some sort of resolution before the Games begin.

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Karl Gotthardt - albertacowpoke

at 15:48 on February 1st, 2010

I would say this is a pressure tactic to get some of their money. The closure of Whistler Blackcomb would be a major embarrassment for Canada

Jessica Tucker

at 17:44 on February 1st, 2010

Uh-oh!

Paul Thomason (not verified)

at 07:14 on February 3rd, 2010

This is a ridiculous article. First, Whistler will not close and the olympics will go forward regardless of what happens with Intrawest. Second, Intrawest would never allow their creditors to foreclose - they should be able to put the company into Ch. 11 and restructure which would probably not impact operations. Third, how could Lehman earn "several billion dollars" by repossessing Intrawest? The creditors may be able to get their money back plus interest, but bankruptcy laws generally don't allow creditors to make a huge return unless the equity owners walk away. If there are truly "billions" to be made, the equity owners would never walk away. Do some research.