Fortress Won’t Get Olympics Payment Before Games

Feb 3 2010 | 8:37pm ET

Fortress Investment Group will get paid for the use of one of its ski resorts for the upcoming Winter Olympics. But not until after the games end on Feb. 28.

The organizers of the winter games in Vancouver said they will make good on their “make whole” agreement with Intrawest, the owner of the Whistler Blackcomb Resort that will host the Olympics’ alpine, bobsled, luge and skeleton events. “Make whole” agreements are designed to compensate Olympic venues for lost business during the two-week-long games.

Fortress is reportedly demanded a US$90 million payment from the Canadian government before the Olympics begin, threatening to sue if it doesn't get the money. But the organizing committee, VANOC, says it will pay up, after the games.

The deal with Intrawest “includes a make-whole element that addresses the financial impact on Whistler Blackcomb as a result of staging the games,” VANOC said. “This will only be finally determined well after the games are over.”

Intrawest is awash in debt following Fortress’ leveraged buyout of the company in 2006. Intrawest is in default on more than US$500 million in loan payments, and its creditors are threatening to begin selling off its assets—including Whistler Blackcomb—at an auction during the Olympics.


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of