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My friend Gerard commented, "you mean these new guys could be less heartless and soul-less than the bastards at Intrawest/Fortress are already?"
Unfortunately my reply was yes - as further staff cuts, advertising reductions, wage concessions and undoubtedly eliminating all capital expenditures are likely to occur.
"OMG no special lift to Kadenwood," moaned Gerard, "what's a trophy wife to do?"
The strong resorts will continue to operate as they are bound to be cash cows, but weak resorts with negative cash flows will be liquidated ASAP or closed. The creditors will also seek to sell excess real estate that Intrawest owns at fire sale prices, putting some pressure on our own real estate market.
Intrawest creditors will encounter great difficulty in getting paid because bankruptcy rules will prioritize who gets what and when. We hope not many small suppliers or construction companies are left on the hook and put under.
Another very big problem is the uncertainty that this presents to those booking conventions here in 2010 and beyond. No company minion will risk his/her hide booking where a deposit can be seized or an event can't be guaranteed.
Sales of Intrawest time shares will dry up and those quarter-share ownership deals at Evolution will die.
"I always felt it was bad Karma them stealing Jenine's store name and all," Gerard commented.
The muni will also have to reassess its current penchant to spend beyond their means, as their biggest taxpayer will not be able to oil the cogs of their grandiose plans. Belt tightening was long overdue anyway at city hall and a reality check for Muddlehead and his free spending council might just be welcomed by many.
"I've got it," Gerard shouted extending a high five in my direction. "Let's cancel the $150,000 post Olympic party for starters, I'm basically tired of partying with a hangover anyways. And while we're at it let's sell those Olympic tickets, likely at a good profit, deemed for the muni's special friends and fund the food bank, or maybe daycare."
Hey Gerard, I think you're coming around to the new reality of living here, how would you feel about running for mayor.