Asc and it current status

[Vortex]

http://www.peaks.shareholder.com/Ed...34-07-13789&SID=07-00#V31308PRPREM14C_HTM_107

no money for stock holders? Saw this on the River board

 

[thetrailboss]

So I see ASC is dissolving.....


....but what about The Canyons????? Am I missing something here? :blink:

 

[ski_resort_observer]

http://www.peaks.shareholder.com/Ed...34-07-13789&SID=07-00#V31308PRPREM14C_HTM_107

no money for stock holders. Saw this on the River board

Not exactly true. Preferred Stockholders and Class A will receive money if there is any left after all debts and liabilities are paid.

Common stockholders will receive nothing via redistibution(money) after the dissolving of the company... but the stock today is going thru a firesale on the market, currently down 51% with a ripping rate of 956,000 shares sold so far today. So, if you were on the ball and sold this morning you would have been able to get maybe .15/share, right now it is .07/share, going down fast. I'm making a big assumption here that no one is buying the stock. :wink:

I know .15/share isn't much but if you owned 10,000 shares, a small amount considering the price the last few years, I guess 1500 bucks is better than nothing.

Based on volume looks like the downslide in ASC stockprice started on June 6.

 

[andyzee]

currently down 51% with a ripping rate of 956,000 shares sold so far today. So, if you were on the ball and sold this morning you would have been able to get maybe .15/share, right now it is .07/share, going down fast. I'm making a big assumption here that no one is buying the stock. :wink:

SRO, so how does that work, x amount of shares sold, but none purchased? :dunce: :lol:

 

[ctenidae]

We intend to sell The Canyons pursuant to our plan of dissolution. The timing of such sale is uncertain at this time.

Buh-bye ASC

 

[Vortex]

Still confused. I should have put a question mark up///// and I will know. I see info it says things to other people. I don't have a clue.

 

[Vortex]

We intend to sell The Canyons pursuant to our plan of dissolution. The timing of such sale is uncertain at this time.

Buh-bye ASC

.



You and Dozer were the guys I was hoping would pop in.

 

[thetrailboss]

We intend to sell The Canyons pursuant to our plan of dissolution. The timing of such sale is uncertain at this time.

Buh-bye ASC

Didn't see that...thanks.

 

[ctenidae]

1.1 million shares today, average daily volume is 58K. That's gotta hurt.
Anyone have any idea how much The Canyons might bring in a sale? Essentially, that's what's left for the shareholders, since with tthe other sales they paid off almost all their debt. Unfortunately, the Series C preferred shareholders get first dibs on any money, and that's about $404 million (it's due to be redeemed in July, anyway, and that's probably a big driver in the decision to dissolve). Anything left over (yeah, right) goes to the Series B holders, and then the Series A and common shareholders get the rest. So, Series C will get, what, 10% of their redemption, and noone else will get anything.

 

[BushMogulMaster]

From SAM

ASC TO DISSOLVE FOLLOWING SALE OF MAINE RESORTS
June 21, 2007


SAM Magazine—Park City, Utah, June 21, 2007—American Skiing Company (ASC) plans to dissolve itself now that it has agreed to sell Sunday River and Sugarloaf, Me., to Boyne USA. As a result of the move to dissolve the corporation, ownership of the remaining ASC resort, The Canyons, will pass to Oak Hill Capital Partners, currently the majority stockholder of ASC.

The decision will have little impact on The Canyons in the near term, as the process of dissolution could take up to three years. While Wolf Mountain, the former owner of the resort, has sued to reaquire it, claiming ASC was delinquent on certain payments and thereby nullified its lease agreements with Wolf, that suit is not scheduled to be heard until May 2008.

The ASC board of directors adopted the plan of dissolution June 20 following the recent sales which, in the aggregate, constituted substantially all of its assets, and the repayment of substantially all of its indebtedness, under the terms of Delaware law, where ASC is incorporated.

Under the terms of ASC’s Series C Preferred Stock, the company had a liquidation preference of approximately $404.3 million as of May 31, 2007 and which the company is required to redeem on July 31, 2007, to the extent that it has legally available funds. ASC will not have the cash for this, and as such, its remaining assets will transfer to its majority shareholder, Oak Hill.

Following dissolution, ASC subsidiaries will continue their corporate existence and will continue to operate their assets. “We will continue to actively prosecute and defend all material litigation matters affecting the Company and its subsidiaries,” ASC said in a letter to shareholders.

At the same time, ASC informed shareholders that “Holders of our Common Stock and Class A Common Stock are not expected to receive any payment or distribution with respect to their shares pursuant to our plan of dissolution after we make payments to our creditors and the holders of our Series C Preferred Stock.”

 

[ctenidae]

I'm half surprised Oak is taking the Canyons. I'm guessing they're not real happy about how that's worked out for them. Never fun to get a $404 million debt paid back with a $40 million resort.

 

[ski_resort_observer]

SRO, so how does that work, x amount of shares sold, but none purchased? :dunce: :lol:

No one is going to buy shares of a company that is dissolving and those who hold common stock just want to get out as fast as possible. It will be interesting to see what happens tomorrow. There actually was some stock bought, price went up from .14 to .15 but I can only assume that this was some sort of administrative buyback.

This is not really a one day event as big investors were probably aware this was on the horizon. On 6/15 the stock went down 25% on 643,000 shares traded. The 404m required repay on July 31 was the reason they had to start selling assets ASAP starting with the Boat back last fall.

This a prediction based on no inside info but I think ASC/Oak Hill will settle with the former owners of the Canyons(Wolf Mtn/Park City West) and then sell it or settle it by selling it to them outright. I don't think ASC wants to risk the lawsuit going to court as they might end up with a much diminished asset.