Or let the great jobs find you.
 
 
Feb 18 2010  

Olympic Losers: Fortress Foreclosure

By Kyle Stock

A suggestion to Olympic freestylers looking to name a new trick: "the default."

As the world's best skiers and snowboarders squared off on the slopes of the Whistler Blackcomb resort, creditors of the property, including Lehman Brothers, prepared for a foreclosure auction.

Friday was to be the day of the auction. A last minute postponement by the creditors mercifully spared Fortress Investment Group, Vancouver and the International Olympic Committee a very public embarrassment.

Still, the imminent financial yard-sale looms for Fortress, a New York-based private-equity and hedge-fund manager that bought the mountain's owner, Intrawest ULC, in August 2006. Intrawest missed a $524 million debt payment on the property in December and has since been liquidating its other resorts at a quick pace, seemingly stretching for the Olympic finish line.

In recent months, Intrawest flipped Copper Mountain Resort in Colorado, British Columbian Panorama Mountain Village, the Village at Squaw Valley near California's Lake Tahoe and the Sandestin Golf and Beach Resort near Pensacola, Florida.

On Jan. 8, Lehman and other creditors gave notice that they would proceed with foreclosure.

Fortress, which is publicly traded, did not respond to requests for comment.

The resort debacle isn't the first Olympic embarrassment for Fortress. It was the primary lender on Vancouver's "athlete's village," a 1,100-unit waterfront development. When the project ran over budget and the real estate market plummeted, Fortress froze its funding.

The governments of Cananda and Vancouver, meanwhile, have stepped to the fore in both cases, pledging cash to keep the lifts running at Whistler and buying out Fortress' loan on the athletes' village.

Write to Kyle Stock


Play the new finance career game from FINS!

Financial Dream Jobs - Sign Or Decline
You just got an offer for your dream job,
BUT...
the last five people in the position were fired.
SIGN DECLINE
FINSFINS combines great financial jobs, career news and advice, company research, and a
professional resume service. FINS is brought to you by The Wall Street Journal

More Finance Career News and Advice

FINSwire 6 hours ago

Santander's U.K. Arm to Hire 600

Santander U.K. is on its way to become a full-service commercial bank -- and is planning hires as part of its expansion. The bank, a unit of Spain's Banco Santander SA, is hunting for 600 workers for bank branches in the U.K.

FINSwire 7 hours ago

FSA To Curb Bonuses, Tighten Rules On Risk-Taking

The U.K. financial regulator is making full use of its newly increased authority to cap bonuses and shut down alternative methods of paying out bonuses such as "non-recourse" loans.

Bull Bear Report 8 hours ago

Hedge Funds Proliferate in Singapore

Hedge fund startups in the Asian city-state are set to be increasing at a rapid pace after the Monetary Authority of Singapore approved a set of rules that said that small funds can keep operating without a license.

Related: European Hedge Funds Flustered by New Rules

Find the Job 10 hours ago

Tweet Your Way to a Job

At a time when personal branding is more crucial than ever in getting noticed during a job search, there are few better ways to promote yourself than to tap into a site designed for just that. But beware of the possible pitfalls: Putting too much of yourself out there and compromising your professional reputation.

Related: Can You Find a Finance Job Through Twitter? | Five Finance Feeds Worth Following






 


FINS Login
 
*Indicates required field
 
User Name*
Password*
     Forgot Your Password?
Or log in using your Facebook account:
Connect with Facebook