Fortress Investment Group LLC has agreed with creditors on the outlines of a debt restructuring for Intrawest ULC, owner of Olympic Alpine ski resort Whistler Blackcomb and properties in Colorado, said a person with knowledge of the talks.
Under the proposal, Intrawest’s $1.2 billion of debt would be split into a senior tranche of $800 million and a mezzanine tranche of $400 million, said the person, who declined to be identified because the talks are private. The parties have set an April 16 deadline to complete discussions.
In Colorado, Intrawest owns the Steamboat ski resort and manages the Winter Park ski area on behalf of its owner, the city of Denver.
Lenders led by Lehman Brothers Holdings Inc., Davidson Kempner Capital Management LLC and Oak Hill Advisors LP have sought control of Intrawest since it missed a final payment on a $1.4 billion loan due Dec. 23. The Vancouver-based company has struggled even after layoffs and other expense cuts. The lenders’ administrative agent originally set a Feb. 19 date to auction Intrawest assets.
Intrawest would pay 10 percent interest on the senior debt under the agreement, while lenders are demanding as much as 17 percent for the mezzanine debt, said the person with knowledge of the talks. The interest on the mezzanine part will depend on the payment terms, which have not been disclosed.
