ASC digs out from extensive debt

[hudson Senior Member Find all posts View Profile Close hudson]

Steamboat the first of several sales that will shrink company

Friday, March 2, 2007

Steamboat Springs — The sale of the Steamboat Ski Area is the linchpin deal in American Skiing Company’s efforts to shed assets and transform the company into a much smaller, debt-free operation............


............ASC was, at one time, one of the largest ski companies in North America. But the announced sales, if all are consummated, will reduce ASC’s holdings to just three resorts — The Canyons in Park City and Sugarloaf and Sunday River in Maine.

There is speculation that ASC is shopping Sugarloaf and Sunday River. That speculation was driven in large part by Monday’s announcement that Leslie “Les” Otten, who founded the company and was its CEO until 2001, has stepped down from ASC’s Board of Directors.

Otten, whose purchase of Sunday River in 1980 became the foundation for ASC’s creation, is reported to be interested in acquiring the Maine resorts. Otten could not negotiate to buy the resorts if he was still active on ASC’s board.

Hirasawa said he would not comment on ASC’s plans for Sugarloaf and Sunday River.

ASC’s stock price closed Thursday at 69 cents a share, down six cents from Wednesday.


SteamboatPilot.com stories - The Steamboat Pilot & Today: Latest stories

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

How can they sell a resort that is owned by timesharers ?

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

Tony, ASC owns the ski resort, timesharers just own the timeshare units, at least that's what I would think.

Does anyone know who they sold/are sellng Mt Snow to? I know Powdr Corp (Park City Mountain Resort owner) is buying Killington...

[Kay H Senior Member Find all posts View Profile Close Kay H]

This will eliminate our ability to go space available at any ASC resort. We frequently did space A at Mt Snow.

[Glitter Brunello Super Moderator Find all posts View Profile Close Glitter Brunello]

This will eliminate our ability to go space available at any ASC resort. We frequently did space A at Mt Snow.

Ouch, I feel your pain. But when you say "space A," do you mean that as a timeshare owner you were allowed to book "bonus time" at low rates for last minute stays at other ASC locations, or do you mean the "space A" through the government sites?

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

So, by selling the attached properties they reduce the values of timehare intervals ?

[hudson Senior Member Find all posts View Profile Close hudson]

Mount Snow and Attitash

ASC and Peak Resorts, Inc. in definitive agreement

February 16, 2007 09:37 AM Eastern Time

American Skiing Company Announces Sale of Mount Snow and Attitash Resorts for $73.5 Million

PARK CITY, Utah--(BUSINESS WIRE)--American Skiing Company (OTCBB:AESK) announced today that it had entered into a definitive agreement to sell its Mount Snow and Attitash resorts for $73.5 million to Peak Resorts Inc., a resort operator with ski resorts in Missouri, Indiana, Pennsylvania, New Hampshire and Ohio. The announced sales follow the December announcement of the planned $265 million sale of Steamboat resort.

“We’ve worked very hard to ensure that the full potential and value of each of our resorts is realized. Under the existing circumstances and market conditions, this means contemplating the sale of certain of our resort assets, as we’ve planned with Steamboat and now Mount Snow and Attitash,” said ASC President and CEO B.J. Fair. “The tremendous interest we have experienced in the resorts is a tribute to the hard work and professionalism of our management teams. After much deliberation and many discussions with our Board of Directors, we feel that the best course of action for our stakeholders will be to sell these resorts under the terms proposed in the definitive agreements. This was obviously a very difficult decision, given the progress we’ve made at our resorts and as a Company,” added Fair.

Included in the sale of Mount Snow and Attitash are the commercial cores of the Grand Summit Hotels located at both resorts. The total cash purchase price of $73.5 million for both resorts is subject to working capital and seasonal earnings adjustments. In addition, the buyer will assume approximately $2 million in debt and other liabilities.

As a condition of the purchase and sale agreement, stockholder approval is required for the sales of the Mount Snow and Attitash resorts. The sole holder of the Company’s Preferred Stock Series C-1, representing 65.8% of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval. Such approval means the transaction may be approved without a meeting of the Company’s stockholders. The Company anticipates distributing an information statement to stockholders regarding the majority stockholder approval as soon as practicable. The stockholder approval will not be effective until twenty days have elapsed following mailing of the information statement to stockholders. In addition to stockholder approval, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust approval and consent of the U.S. Forest Service.

The sale is expected to close on or before April 30, 2007. The Company expects to use the net proceeds from the sale to reduce existing debt and, to the extent any proceeds remain available thereafter, for working capital purposes or as otherwise determined by the board of directors of the Company.

About Mount Snow and Attitash

Mount Snow was the fifth most visited resort in the eastern U.S. in 2006, and is noted for being the closest major Vermont resort to the New York City metropolitan area. Summer attractions include an 18-hole championship golf course and mountain biking. Attitash consists of 280 acres of skiable terrain and is located in the heart of New Hampshire’s Mount Washington Valley. The resort also offers mountain biking, a water park, alpine slide and various other summer amenities.

[Kay H Senior Member Find all posts View Profile Close Kay H]

Ouch, I feel your pain. But when you say "space A," do you mean that as a timeshare owner you were allowed to book "bonus time" at low rates for last minute stays at other ASC locations, or do you mean the "space A" through the government sites?

ASC resorts had a policy that if it was not your scheduled week(out of 13 a yr) you could use another of their resorts for housekeeping fees if they were less than 90% occupied, for 3 nights, extending another 3 nights if you changed to another room. Could only reserve 72 hrs in advance. We loved it and used it often between Killington and Mt Snow. DH doesn't like weekend skiing and it gave us 5 days without taking our unit out of the rental pool.

I hope this sale doesn't result in too many negatives fpr owners.