CARRABASSETT VALLEY – Rumors of a pending collapse of American Skiing Co. were laid to rest Monday with the announcement of a new refinancing plan, the president of ASC resorts in Maine said.

The Park City, Utah, company has refinanced more than $320 million in debt that was due to be paid in 2006, said ASC spokesman David Hirasawa.

“It puts to rest any rumors of collapse, and, because it strengthens the parent company, it creates opportunities for all the resorts,” said John Diller, president of ASC resorts Sunday River Ski Area and Sugarloaf/USA.

ASC owns Sunday River and Sugarloaf/USA in Maine; Attitash in New Hampshire; Killington and Mount Snow in Vermont; Steamboat in Colorado; and The Canyons in Utah.

The refinancing plan consists of a $125 million first lien loan, including a $40 million revolving credit line, due November 2010; and a $105 million second lien term loan due November 2011, according to a companynews release.

“This allows us to be more flexible in how we choose to spend on our resorts’ infrastructure in the future,” Hirasawa said. He described the endeavor as “pretty momentous.”

According to the press release, the refinancing was handled by Credit Suisse First Boston and GE Commercial Finance’s Commercial and Industrial Finance unit. It was accompanied by a “major participation” from Black Diamond Capital Management, a privately held alternative asset management firm.

Company President J.B. Fair said he was “especially pleased” by the affirmation of Black Diamond and Commercial and Industrial Finance in continuing their relationship with ASC, and with ASC’s ability to attract Credit Suisse, a leading global investment bank.

In all, the comprehensive refinancing addresses more than $320 million in debt and preferred equity securities and is the completion of refinancing efforts announced in September 2004.

“The successful refinancing is a major milestone for ASC, and is indicative of the substantial progress we have made in improving the overall financial stability of the company,” Fair said.