KILLINGTON, VT May 27, 2004 - The owners of Killington Resort today announced a partnership with a Texas-based company, a critical step in the development of the resort's slope-side real estate and base area village.
"Completing this transaction allows for further design and planning associated with the Killington Village," said Allen Wilson, president of Killington Resort. "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. This will enable Killington to maintain its position as one of the nation's premier destination resorts for decades to come."
SP Land Company, LLC has secured a majority interest in 213 acres in the Killington base area and another 256 acres at the resort's Bear Mountain area. Killington and its parent company, American Skiing Company, have been working with Ski Partners, LLC, an affiliate of the Eiger Fund I, LP, since 2002. Ski Partners, the managing member of SP Land, has had a financial stake in Killington Resort since 2000.
"We're very pleased with this partnership and excited about the potential for quality development at Killington Resort," said Steve Selbo, president of SP Land Company. "Killington's reputation in the recreation world, the community surrounding the mountain and existing resort facilities provide all the ingredients necessary to create an unsurpassed slope-side experience."
The transaction also represents the final element of the restructuring plan announced by American Skiing Company Resort Properties, Inc. and finalizes the restructuring of its Real Estate Term Facility led by Fleet National Bank.
"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, chief financial officer of American Skiing Company. "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."