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Founder leaves American Skiing

Joanne Kelley, Rocky Mountain News

Published February 27, 2007 at midnight

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The once dominant American Skiing Co. has parted ways with its founder as its shrinks into a small operator of winter resorts.

The Park City, Utah-based company announced Monday that Leslie Otten, who took the company public in 1996, has resigned from its board. The news follows a string of planned deals that will slash the company's holdings to three ski areas from eight.

American will complete the $265 million sale of its largest property - Steamboat Ski Resort - next month.

"American Skiing Co. is clearly in transition," CEO B.J. Fair said in a statement issued last week after the company said it would shed more ski areas. "We will be reviewing our organizational needs and adjusting accordingly."

The company likely will have to make cuts at its headquarters in Park City as it reduces its holdings nationwide, an American spokesman said.

Otten, who started the company in Maine with the purchase of the Sunday River ski area there, said in a statement that he has "mixed feelings" about leaving the board. He added: "It's time to look at other options."

American recently struck deals to sell four northeastern ski areas, including the marquee Killington Ski Resort in Vermont.

Killington, as well as the Pico ski area, will be sold for $83.5 million to local firm SP Land Co., the company disclosed last week.

American this month said it would sell its Mount Snow and Attitash ski areas for $73.5 million to Peak Resorts. Canada's Intrawest Corp. is scheduled to close its deal to buy Steamboat next month.

The deals allow American Skiing to repay its more than $300 million in bank and junior subordinated debt, obligations that had hampered its ability to make big investments in its resorts. It sold Heavenly ski area in California several years ago to Vail Resorts Inc.

American said it hopes to focus its attention on its remaining resorts: The Canyons in Utah and Maine's SugarLoaf and Sunday River.

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