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Stowe and AIG --

post #1 of 31
Thread Starter 
What happens to Stowe if its parent company, insurance and finance giant AIG, goes belly-up before the first snow?
post #2 of 31
If AIG goes belly up (which ain't gonna happen) say goodbye to Stowe...Who could possibly be interested in buying that mountain? They have lights so it might be good a good investment for nightime snow tubing or something like that.
post #3 of 31
Too much money has been invested there for it to flop.

Someone would buy it up.

I wish it would have happened before all of those "improvements" were made.
post #4 of 31
Quote:
Originally Posted by stoweguy View Post

Someone would buy it up.

I wish it would have happened before all of those "improvements" were made.
I know what you mean, fast lifts and quality snowmaking suck.
post #5 of 31
Look what happened to Big Sky when Chrysler Corp. decided it wasn't a good match for the ski industry.
post #6 of 31
Quote:
Originally Posted by evansilver View Post
What happens to Stowe if its parent company, insurance and finance giant AIG, goes belly-up before the first snow?
Then I'll finally drive up and ski it. I know it's a great place to ski but I've just never wanted to add a dime to AIG's cash flow. New owners, please, who can hopefully pick up the asset for a song and afford to keep running it right.
post #7 of 31
Quote:
Originally Posted by Treewell View Post
If AIG goes belly up (which ain't gonna happen)
Don't be so sure about that....not after what I read today.
post #8 of 31
yeah - 1 more day of operational cash is what I heard.

They want $40B from the gummint, which I HOPE ain't gonna happen ....
post #9 of 31
Looks like the stock is closing at around $4.76, down from $12.14 yesterday. And off its 52 week high of over $70! I heard something about them getting a $20B lifeline. Time will tell if they survive.

I'll kick in $20 for the Epicski takeover of Stowe!
post #10 of 31
[quote=SnowSnake;954936 I heard something about them getting a $20B lifeline.[/quote]

I heard the figure was actually $40B
post #11 of 31
What I read midday in the NY Times: NY Ins commissioner approved loans of $20B from AIG's operating insurance companies (e.g., National Union, American Home, Lexington Insurance, etc.) to the parent company which apparently has the investment losses.

In other words, my editorializing here: a shell game, moving the good assets upstream for the benefit of AIG shareholders, at the risk of AIG's policyholders.
post #12 of 31
Cramer: AIG must not fail!

http://www.cnbc.com/id/26720594

Looks like they will have to sell off some assets to stay in business. Make an offer . These are the times fortunes are made - get a great deal from a multi-billion dollar insurance giant on the ropes. That's what the other ins companies will likely do.
post #13 of 31
Quote:
Originally Posted by evansilver View Post
What happens to Stowe if its parent company, insurance and finance giant AIG, goes belly-up before the first snow?
No worry. If AIG fails, the US govt will bail it out. Everything will be fine
post #14 of 31
I hoppe they don't.
Government intervention with lending rates and the market has a lot to do with why we are in this mess.
post #15 of 31
They are looking to sell off the insurance business...which may loan the 20B....Hummm.
post #16 of 31
Quote:
Originally Posted by evansilver View Post
What happens to Stowe if its parent company, insurance and finance giant AIG, goes belly-up before the first snow?
Nothing we'd care about. Stowe will continue to operate.
post #17 of 31
Bottom line...what is Stowes...bottom line. Profit, break even, loss. This is what a CEO making 18M cares about.
post #18 of 31
yeah - and real estate ops. How about that big project down ther e- what is it $400M or something?

btw - AIG already asked for $40B from Bernanke and he said no. So they are asking $70B from GS. These are bridge loans until they can sell off assets to have working capital to pay bills. Buy a little time.
post #19 of 31
Maybe Aflac or Geico will step up to the plate!
post #20 of 31
Quote:
Originally Posted by crgildart View Post
I hoppe they don't.
Government intervention with lending rates and the market has a lot to do with why we are in this mess.
Are you kidding? If AIG fails and they don't bail them out, it will have a MAJOR impact on the overall economy. AIG has their hand in soo many things, and there are MILLIONS of AIG policyholders. AIG is just too engrained into the American economy just to let it fail.

The government will surely bail it out.
post #21 of 31
Yesterday they were talking about bridge loans so they can sell things off because they owe so much thanks to derivative trading gone sour.

It's kind of like being in a position of going to the pawn shop with a stash of stuff to get cash to buy gas for your car to drive it to the dealer to sell it . They own so much stuff - including insurance btw - that you'd think they'd have enough collateral and assets that have value they will not fail. But they have to get there first.

So there will be a downsizing to some degree I would think. Their stock is down another 50% today.
post #22 of 31

Bernanke bailed them out

$85B from the Fed to keep things rollin for AIG, the $1T company.

Link

Quote:
The loan will have a 24-month term and is expected to be repaid by the sale of AIG assets. The federal government will have veto power over the payment of dividends to shareholders.
The AIG board approved the rescue plan last night.
The bailout came as AIG, desperately trying to raise capital in recent days, was close to filing for bankruptcy. Yesterday, Fed officials, who had previously rebuffed AIG's requests for a government loan, worked with lenders as they tried unsuccessfully to come up with a private financing package. Ultimately, the Fed became the last resort.
Federal Reserve chairman Ben Bernanke and Treasury Secretary Henry Paulson briefed congressional leaders last evening, including Representative Barney Frank, the Newton Democrat who chairs the House Financial Services Committee, according to Frank's spokesman, Steven Adamske. Frank had no comment last night, Adamske said.
Senator Charles Schumer, a New York Democrat, who was also briefed on the plan, said in a statement, "The administration is approaching an unprecedented step, but unfortunately we are living in unprecedented times. Hearing of these plans, you have to stop to catch your breath. But upon reflection, the alternatives are much worse."
post #23 of 31
Thread Starter 
So, back to my original question. The loan is supposed to allow for the "orderly" disposition of AIG's assets, so it's not likely that something will happen right away. But who's going to end up with Stowe, and will it change things much? Is the real estate development far enough along that the disappearance of AIG capital wont leave half-finished buildings open to the snow? Where is Les Otten now that we really need him?
post #24 of 31
No one has an answer to your question I think at this point because it's clear they will be selling off assets.

I wouldn't let it stop me from skiing at Stowe; working or investing in property there OTOH I guess I'd be more concerned! (of course there could be some good buys coming up).
post #25 of 31
I wonder it Stowe is, or will be, making a profit for a while. Seems that big devo will take a while to pay off. If it is, maybe they could borrow against it.

AIG was supposed to be borrowing from it's subsidiaries. Don't know if they'll do that now that they borrowed $85B from Uncle George. I do know that they government said hands off to some of their profitable insurance subsidiaries.
post #26 of 31
Stowe hasn't really built anything until it is already sold. That's why the plans have changed over the years and the highest dollar properties have not yet been built. As for who will end up owning Stowe, I have an idea of who that might be. Of course I thought he might end up with a role in saving AIG too.
post #27 of 31
Quote:
Originally Posted by epic View Post
... As for who will end up owning Stowe, I have an idea of who that might be. Of course I thought he might end up with a role in saving AIG too.
Nice tease Epic
post #28 of 31
Hank Greenburg?
post #29 of 31
Quote:
Originally Posted by Gotama View Post
Hank Greenburg?
He's going in 50/50 with Spitzer.
post #30 of 31
Thread Starter 
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