KILLINGTON, Vt. (AP) – A Texas company has taken control of 469 acres at the base of the Killington ski resort, relieving the American Skiing Company of millions of dollars of debt.

As part of the deal between Killington Ltd. and a new company called SP Land Co. of Dallas, SP Land will take over American Skiing’s debt to Fleet Bank. American Skiing was in default on loans of $78 million to that bank, at interest rates of up to 29 percent, according to the company’s most recent financial report.

The Eiger Fund, a Dallas-based real estate investment group with which SP Land is affiliated, has been one of Killington’s creditors since 2000. A subsidiary of the Eiger Fund has worked with Killington to restructure the debt of its parent company, ASC, since 2002.

The deal also means ASC is no longer in default on any loans for the first time in six years, he said

“This is a partnership that is mutually beneficial because it is going to push Killington forward,” said Killington President Allen Wilson. “For SP Land Co. to be successful, Killington has to be successful and vice versa.”

American Skiing’s financial troubles have made it impossible for Killington to invest in the large-scale development of a ski village that was first suggested five years ago.

“Down the road, this will create the much-needed energy that Killington, the town, and even Rutland have been looking for,” he said.

SP Land Co. president Steven Selbo said he wasn’t committed to following the shelved ski village blueprints to the letter, but he called this vision for Killington’s future a “good place to start.”

He said he would soon meet with town officials to try to extend the existing permits for the village.

“We now have the opportunity to go back and review these plans,” said Selbo, who is based in Atlanta, Ga. “We need time to review it and come to our own conclusions.”

The land at the base of Killington Mountain recently acquired by SP Land Co. would lend itself the development of hotels, townhouses, and condominiums within easy access of golf and ski slopes, Wilson said.

AP-ES-05-15-04 1300EDT