American Skiing Company/MeriStar Hotels & Resorts
- --------------------------------------------------------------------------------
Box 450 Bethel ME 04217
- --------------------------------------------------------------------------------
Phone: 207-824-8100 Fax: 207-824-5274
e-mail: skip@sundayriver.com
News and information
[GRAPHIC OMITTED][GRAPHIC OMITTED]
[OBJECT OMITTED]
For immediate release
Contacts:
Skip King (Media) Erik Preusse (Analysts/Investors)
Vice President, Communications Senior Financial Analyst-Strategic
American Skiing Company Planning and Investor Relations
(207) 824-5020 American Skiing Company
(207) 824-8140
American Skiing, MeriStar Hotels & Resorts Announce
Withdrawal of Plans for Merger
NEWRY, Maine, March 23, 2001-American Skiing Company (NYSE: SKI), the
nation's largest ski resort operating company, and MeriStar Hotels & Resorts
(NYSE: MMH) announced today that they have withdrawn plans to merge the two
companies due to changes in economic conditions and the combined companies'
inability to effect the capital markets transactions required to consummate the
merger. Each company also announced the cancellation of shareholder meetings
scheduled for approval of the merger. American Skiing's shareholder meeting had
been scheduled for March 23, and MeriStar's shareholder meeting had been
scheduled for March 26.
"With the recent changes in economic conditions and their resulting
impact on the financing necessary to operate the combined company, each company
has reached the conclusion that pursuing operations on a standalone basis is
more attractive to its shareholders than consummation of the merger," said
Leslie B. Otten, Chairman and Chief Executive Officer of American Skiing
Company. "We continue to enjoy a substantially better ski season than the last
two years. Our management team is focused on continuing to deliver the high
level of services that our customers have come to expect, reducing our debt and
delivering shareholder value. We expect to continue to reap benefits from the
capital investments which we have made at our resort at The Canyons in Park
City, Utah and in the new Heavenly Gondola in South Lake Tahoe. In the east,
where the company has made significant capital investments over the past three
years, highlighted by this year's Killington water project, we expect to see
continued improvement in our operating results."
The Boards of each of MeriStar and American Skiing met separately
on March 22, 2001 and, following an update from management on the status of the
transaction, voted to terminate the merger plans. The companies each executed a
letter terminating their existing merger agreement without liability to the
other. American Skiing also announced the termination of its solicitation of
consents from registered holders of the 12% Senior Subordinated Notes due 2006
of American Skiing to the execution of a supplemental indenture effecting
certain amendments to the indenture, dated June 28, 1996, among American Skiing,
the guarantors named therein and United States Trust Company of New York, as
trustee.
Headquartered in Newry, Maine, American Skiing Company, founded by
Leslie B. Otten, is the largest operator of alpine ski, snowboard and golf
resorts in the United States. Its resorts include Steamboat in Colorado;
Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA
in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly
in California/Nevada. Additional information is available on the company's Web
site, www.peaks.com.
The historical and forward-looking statements about American Skiing Company
contained in this press release are not based on historical facts, but rather
reflect American Skiing Company's current expectations concerning future results
and events. Similarly, statements that describe the Company's objectives, plans
or goals are or may be forward-looking statements. Such forward-looking
statements involve a number of risks and uncertainties. In addition to factors
discussed above, other factors that could cause actual results, performances or
achievements to differ materially from those projected include, but are not
limited to, the following: changes in regional and national business and
economic conditions affecting both American Skiing Company's resort operating
and real estate segments; competition and pricing pressures; failure to renew or
refinance existing financial liabilities and obligations or attain new outside
financing; failure of on-mountain improvements and other capital expenditures to
generate incremental revenue; adverse weather conditions regionally and
nationally; seasonal business activities; changes to federal, state and local
land use regulations; changes to federal, state and local regulations affecting
both American Skiing Company's resort operating and real estate segments;
litigation involving ant-trust, consumer and other issues; failure to renew land
leases and forest service permits; disruptions in water supply that would impact
snowmaking operations and impact operations; the loss of any of our executive
officers or key operating personnel; control of American Skiing Company by
principal stockholders; failure to hire and retain qualified employees and other
factors listed from time-to-time in American Skiing Company's documents filed by
the Company with the Securities Exchange Commission. The forward-looking
statements included in this document are made only as of the date of this
document and under Section 27A of the Securities Act and Section 21E of the
Exchange Act, we do not have any obligation to publicly update any
forward-looking statements to reflect subsequent events or circumstances.