News for the Hospitality Executive
|PARK CITY, Utah - February 16, 2007 - American Skiing Company
(OTCBB:AESK) announced today that it had entered into a definitive agreement
to sell its Mount Snow and Attitash resorts for $73.5 million to Peak Resorts
Inc., a resort operator with ski resorts in Missouri, Indiana, Pennsylvania,
New Hampshire and Ohio. The announced sales follow the December announcement
of the planned $265 million sale of Steamboat resort.
“We’ve worked very hard to ensure that the full potential and value
of each of our resorts is realized. Under the existing circumstances and
market conditions, this means contemplating the sale of certain of our
resort assets, as we’ve planned with Steamboat and now Mount Snow and Attitash,”
said ASC President and CEO B.J. Fair. “The tremendous interest we have
experienced in the resorts is a tribute to the hard work and professionalism
of our management teams. After much deliberation and many discussions with
our Board of Directors, we feel that the best course of action for our
stakeholders will be to sell these resorts under the terms proposed in
the definitive agreements. This was obviously a very difficult decision,
given the progress we’ve made at our resorts and as a Company,” added Fair.
As a condition of the purchase and sale agreement, stockholder approval is required for the sales of the Mount Snow and Attitash resorts. The sole holder of the Company’s Preferred Stock Series C-1, representing 65.8% of the voting shares entitled to vote on the matter, has voted in favor of the transaction, which constitutes majority stockholder approval. Such approval means the transaction may be approved without a meeting of the Company’s stockholders. The Company anticipates distributing an information statement to stockholders regarding the majority stockholder approval as soon as practicable. The stockholder approval will not be effective until twenty days have elapsed following mailing of the information statement to stockholders. In addition to stockholder approval, the transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust approval and consent of the U.S. Forest Service.
The sale is expected to close on or before April 30, 2007. The Company expects to use the net proceeds from the sale to reduce existing debt and, to the extent any proceeds remain available thereafter, for working capital purposes or as otherwise determined by the board of directors of the Company.
About Mount Snow and Attitash
About American Skiing Company
Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act).
American Skiing Company
|Also See:||American Skiing Company Names Brandon McCarter Eastern Lodging Vice President / June 2004|
|American Skiing Company Offering 50 of the 167 Remaining Quarter Share Units at Attitash Bear Peak at Absolute Auction / October 2001|
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