Maine resorts eyed as part of skiing sell-off

PORTLAND – Maine’s Sugarloaf/USA and Sunday River ski areas could be the next resorts that American Skiing Co. unloads following its announcement that it’s selling its other New England properties.

That’s according to ski industry observers who say they wouldn’t be surprised if financially troubled American Skiing continued its selling spree to concentrate on its Utah resort, The Canyons.

American Skiing’s focus is clearly out West, not in Maine, said Brad McCurtain, who has followed the company for years as president of Maine Securities Corp. in Portland.

Not only did American Skiing move its headquarters from Maine to Utah five years ago, it has grown The Canyons from 63 to 144 trails in the past decade while keeping the status quo at Sugarloaf and Sunday River.

Since the winter of 1997-98, skier visits have fallen 14 percent at Sunday River and 13 percent at Sugarloaf. At the same time, annual skier visits at the Canyons have nearly tripled, from 168,000 to 471,000.

“I think the betting’s pretty good that Sugarloaf and Sunday River will be split off from the parent company. The question is how?” McCurtain said.

American Skiing went public a decade ago and grew to become the nation’s largest alpine ski company with resorts from Maine to California. But with the rapid expansion came a mounting debt load that has strained the company’s financial resources.

The company’s stock price fell from its initial public offering of $18 a share to less than 20 cents a share. The company was delisted from the New York Stock Exchange, losing its coveted SKI ticker symbol.

To pay off its debt, the company in recent months has been selling off its properties.

In December, it announced it was selling the Steamboat ski resort in Colorado for $265 million in cash. This month it agreed to sell Killington, Mount Snow and Pico resorts in Vermont and Attitash in New Hampshire for a combined $157 million. The announced sales of the New England properties have been cheered by investors – the stock price nearly tripled last week to 98 cents a share.

When the deals are complete, the company will have just three ski resorts: The Canyons, Sugarloaf and Sunday River.

American Skiing appears to be leaving the door open on what might happen to Sugarloaf and Sunday River down the road. “The board hasn’t approved anything … at this time,” said investor relations manager David Hirasawa.

At Sunday River and Sugarloaf, rumors are circulating about whether the mountains will be sold and if so, to whom. One name that comes up is Les Otten, the former owner of Sunday River and the founder and former chief executive of American Skiing Co. Otten holds more than 14.7 million shares of American Skiing stock, according to the company’s 2006 annual report.

Otten has recused himself “with regard to certain activities” as a board member of American Skiing, Hirasawa said without going into specifics.