An article recently released in Mountain Town News describes the current status and opinions regarding the future of Intrawest. For a background on the bankruptcy and the history of Intrawest, check out ‘Intrawest Foreclosure, Details and Meaning.’
Instead of seeing the anticipated auction one ‘source puts it at 75 to 80 percent odds that the banks will play out some more money and restructure the debt so that Fortress, the owner of Intrawest, can continue operations…Given the current economic condition, auction of the assets at a fire sale price does not bode any good…The likelihood of an auction is extremely low due to lack of buyers and bad prices for the seller (lenders).’
Another situation that is being played out is the possibility that Vail Resorts may make a deal with Intrawest for some of their larger assets. Concerning Steamboat however, speculation continues as to whether this purchase would be a good match for both Vail Resorts and Steamboat. One of the major arguments against this purchase is that ‘Steamboat draws from the same destination market as Breckenridge and other resorts owned by Vail. As such, purchasing Steamboat might be cannibalizing its own customer base.’
The article concludes stating ‘The bottom-line in all this, says a source with a strong understanding of the Intrawest situation, is that the company still has a lot of cash flow. ‘I am betting that in the end they work it out with the banks. I will be very surprised if they don’t.’
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