ASC Announces Sale of Killington/Pico

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Publish Date

02/20/2007

SAM Magazine--Park City, Utah, February 20, 2007--American Skiing Company (ASC) announced today that it has entered into a definitive agreement to sell its Killington and Pico resorts in Vermont to SP Land Company, a major area land owner, for $83.5 million. SP Land Company, which has been in partnership with Killington since 2004 on a large development at the base of the area, will partner with POWDR Corp in the purchase and operation of the resorts.

"During the design and planning phase of the Killington Village," says ASC president and CEO B.J. Fair, "it became apparent that the developable real estate and resort operations should be controlled by a single owner."

Fair went on to say, "With the recent announced sales of Steamboat, Mount Snow, Attitash, and now Killington and Pico, American Skiing Company is clearly in transition. We will be reviewing our organizational needs and adjusting accordingly. As a result of these transactions, the company expects to repay all bank debt, junior subordinated debt, and have substantial resources to address the needs of our Sunday River and Sugarloaf resorts in Maine and The Canyons in Utah."

Included in the sale of Killington and Pico, which is expected to close in April, are the resorts and all resort-owned operations, all resort-owned real estate and The Wobbly Barn restaurant. SP Land Company will also assume $5 million of debt and other liabilities and certain contractual obligations of ASC.

As for any future sales of ASC's remaining three resorts, ASC spokesperson Chip Carey says, "the board has not approved any other actions."

Comments

Joy to the World!

Now maybe, the resort village can finally begin, as well as the Killington/Pico interconnect, and on-mountain improvements.

Killington and Pico being sold!

I wouldn't bet on the village or the connection being done. It is nice however to see the East Coast Ski Areas get back to the individual resorts they once were.

No more Mc- ASC.

Les has to be shaking his head!

Congrats Powdr Corp and SP Land Co.

What a welcome relief!!! Good bye ASC. They won't be sucking the cash out of the best ski area East of the Rockies any more. Now maybe just maybe the new owners will upgrade the facilities and return the Big K to the glory days of Pres Smith. My next wish as a ASC stockholder (loser) is to get the SEC to investigate the rape of the once a promising American Ski Co by Les Otten. Then it would be perfect year.

put all them eggs in one basket

In the last week the number of ASC resorts has been cut in more than half. I wonder what will happen to the number of VP's and the size of their bonus' ? Since Powdr (Park City) has been buying off ASC maybe they have a mole that is getting ASC out of debt and ready for purchase by their neighbor. Poor Kenny. They used his land to keep afloat, now they have liquidated more than half their holdings, and he still won't get the full rent. Les Otten could take some lessons from his replacements.

Skier

So ASC is now Sunday River, Sugarloaf, & The Canyons. All the cash proceeds will pay off their LT debt. And the value of the company is still only $14M. Something seems a bit odd there.

Killington PICO

As for any future sales of ASC's remaining three resorts, ASC spokesperson Chip Carey says, "the board has not approved any other actions."

Chip, 65% of ASC stock is owned by one person, he does not need Board approval to sell the remaining 3 resorts. He sold Snow w/o approval of Board see SAM article.
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