ASC Cuts Debt, Spins Off Killington Village
SAM Magazine--Park City, Utah, May 14, 2004--American Skiing Company (ASC) has restructured its real estate debt, cutting $80.4 million from its balance sheet.
The restructuring creates a new partnership between ASC's Killington Resort and SP Land, a newly formed affiliate of Eiger, Inc., one of the lenders under ASC's Real Estate Term Facility, to develop a base village at Killington. Several development parcels at Killington, along with $55.4 million debt held by Fleet National Bank and Ski Partners LLC, have been transferred from ASC Resort Properties and Killington into SP Land. Ski Partners, an affiliate of Eiger, owns 75 percent of SP Land; ASC and Killington combined retain 25 percent.
ASC expects these changes to jump-start the stalled development of the Killington base village. "We believe that the new company has the real estate expertise and financial resources necessary to take the village from a planning stage to fruition," said Allen Wilson, president of Killington Resort.
In conjunction with the restructuring of the Real Estate Term Facility, Oak Hill Partners has contributed a $25 million debt, due to Oak Hill from ASC Resort Properties, as additional paid-in capital to ASC.
The restructuring removes ASC from defaults on its loans. "The elimination of these defaults is critically important to the company and allows us to continue to strengthen our relationship with our lenders and capital partners," said Betsy Wallace, ASC chief financial officer. "All of the debt of American Skiing Company and its subsidiaries, including our real estate subsidiaries, is in compliance with all applicable financial covenants. We are now solely focused on creating opportunities for the future." \