You heard it here first on January 11th, which is the date I brought you the NY post story that detailed the first real hint of trouble for Whistler/Blackcomb resort owners, Intrawest, whose creditors are threatening to foreclose on them and seize control.
Well, today CBC has the followup story as a result of this weeks article in the NY Post that say VANOC officials are considering pulling their financial support as a result of the mess. If that happens, the Olympics might not be able to take place in Whistler!
So how bad is it? Well, the creditors have rejected a repayment proposal and may move to foreclose on the resort in 10 days – putting everyone into crisis mode with only weeks until the games begin.
Sources tell The Post that creditors holding $1.4 billion of debt on Whistler owner Intrawest are planning to foreclose on the company within the next week and a half, casting a shadow on the resort, which will host the alpine events of the 2010 Olympics. “It will probably happen within 10 days,” a source said.
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.
“We have a 2002 agreement with Vanoc to host the Winter Olympics and have every confidence that Vanoc will honor its financial commitments,” Intrawest CEO Bill Jensen said. “Intrawest is looking forward to a successful Olympic games.”
Fortress has already written down most of its Intrawest investment, but some of its investors have co-investments in Intrawest, making its survival still important to Edens, a source said.
Fortress declined comment, as did the Canadian government and Lehman
And yes, I’m still officially on a break, but this is too good to pass up.
Should this not be a topic of discussion at the water cooler? CKNW? And if I were the editor of a large local daily, I would certainly have this on the front page, which it is not. But hey, that is just me…because as detailed in the NY post story I brought you on the 11th, some people are expecting a bail-out from the Canadian government, who refused to respond to the NY post story.
So, the questions remain:
Is the Canadian government going to fork over some rescue cash to Fortress to save the Olympics?
Or is that something the provincial government is working on behind the scenes? Why no response?
And more importantly, why have I had to rely on the NY Post for these stories – until today ? Thank God for east coast news outlets!
** Businessweek is reporting that Intrawest is headed for the auction block Feb. 19th- smack dab in the middle of the 2010 Olympics…… ; )
Let the Games begin!
PS: I know you have all read this MANY times prior to this, but humour me again,especially in light of current developments- this is for those NY post writers scoping the blog all day…. https://lailayuile.wordpress.com/2009/06/29/the-key-to-the-bc-rail-sale-lays-in-premier-gordon-campbells-beginnings-in-real-estate-and-land-development/
Like I said, sometimes.. things that are old, become new again. You be the judge