PORTLAND – American Skiing Co. announced Wednesday it will sell its Steamboat resort in Colorado and cut jobs under a restructuring that is designed to reduce its debt load and operating costs.

Under the restructuring, 70 full-time jobs will be eliminated and another 160 full-time jobs will be converted to seasonal status companywide in an attempt to save $5 million a year, said William “B.J.” Fair, the company’s chief executive officer.

It was not an easy decision for the company to put Steamboat – one of the company’s crown jewels – on the market, Fair said.

“Steamboat is an outstanding property and a premier ski resort destination. The decision to sell the resort was very difficult,” Fair said in a statement issued from the company’s headquarters in Newry.

But the decision to sell Steamboat underscores the company’s resolve to maximize resources and create shareholder value, Fair said. Credit Suisse First Boston has been retained to assist in the sale.

The company, which has high debt, has had a tough time since it went public in November 1997. Its stock has fallen from an initial price of $18 a share to close at $1.26 Tuesday on the New York Stock Exchange. There was little change in midafternoon trading Wednesday after the announcement.

In announcing the restructuring, American Skiing said it expected third-quarter earnings to fall below projections.

The company blamed the revised earnings on charges related to restructuring and merger activities and from weaker-than-expected results from the company’s real estate subsidiary.

Despite the problems, Fair said he was encouraged that skier visits returned to normal levels thanks to the snowy winter.

“While we have had a challenging year, looking further ahead we are confident that this new plan places us on track toward generating steady improvement in our financial performance,” Fair said.

The restructuring comes two months after the company’s founder, Les Otten, resigned as chairman and chief executive officer.

In addition to cutting costs and selling Steamboat, the restructuring calls for American Skiing to emphasize the growth of resort village development, along with restructuring its debt and attracting new capital.

In addition to Steamboat, American Skiing’s other holdings are Sugarloaf and Sunday River in Maine; Attitash Bear Peak in New Hampshire; Killington, Mount Snow and Sugarbush in Vermont; The Canyons in Utah; and Heavenly in California and Nevada.