Vancouver downplays ski venue dispute

VANCOUVER (Reuters) - Organizers of the Vancouver Winter Olympics said on Wednesday the financial situation surrounding the Whistler resort -- a key location for many events -- is more of a distraction than a danger to next month''s Games.

Intrawest and its owner, U.S. private equity firm Fortress Investment Group LLC, have been haggling with creditors over refinancing the $1.7 billion in debt Fortress took on in buying Intrawest in 2006.

Intrawest has been keeping VANOC up to date on the status of its talks with creditors, organizers said,

VANOC dismissed concerns about an announcement by creditors of Intrawest Holdings that they planned to auction off their stake in the company in February, when the Games will be under way [ID:nN20176999].

The announcement prompted news reports that the Whistler resort itself was going on the auction block, something that VANOC officials dismissed as unlikely given such a short time frame and the legal complexities of the case.

"We obviously have a business plan to deal with any eventuality," Dan Doyle, VANOC''s vice-president of construction told reporters following the organization''s scheduled board meeting on Wednesday.

The Games begin on February 12.

"We''ve got good solid legal advice from both inside and outside of VANOC, and they are as confident as I am that we will be fine," Doyle said.

Intrawest also dismissed reports that the resort might be sold during the Games and said it was still in talks with its creditors.

VANOC officials said it would make no sense for the creditors to disrupt an event that would enhance Whistler''s value. The resort, about 125 km (80 miles) north of Vancouver, will host Alpine skiing and several other competitions, including bobsleigh events.

Fortress was also at the center of a financial dispute involving the Vancouver athletes'' village.