Sale going through for Treasure Island

Treasure Island resort is in the process of being sold for what has been described as a ‘very high price’ by the hotel’s appointed receiver Jeff Coyne.

Yesterday (Thursday) Mr. Coyne confirmed that a court order had been received authorizing the sale of the Seven Mile Beach resort.

He said that by mid to late April the sale would have gone through.

The resort is being purchased locally with foreign investment backing, he confirmed. However, at the time of going to press it had not been confirmed who the buyers are or for what price it is being sold.

Speaking in his role as Receiver, Mr. Coyne said that on the date of actual sale he will let all staff go and the new owners will re-hire some, but perhaps not all of the 73 staff. This includes staff of Monte Cristo Chop House, which is part of the resort.

He added that redundancies will be given and ‘no-one will be short-changed’.

Mr. Coyne commented that the selling price is a very high price.

‘By running the hotel well and putting money into it after the storm it has really helped the price go up much higher than in September 2003 when all this began,’ he said.

Before Hurricane Ivan hit in September 2004, the hotel was operating at 90 per cent occupancy and was running 258 rooms, he said.

Currently 200 rooms are operating, but that is due to go up to 250 soon.

Mr. Coyne described the sale as a ‘good ending’ for the resort, adding ‘it’s been hard work for everyone involved to get it where it is today’.

Mr. Coyne is an independent receiver, who was appointed by Scotiabank to deal with the resort’s debts on 4 September, 2003.

Mr. Coyne confirmed that government loans will be paid, along with secured creditors.

He said that for two weeks after the sale he will be around to pay bills and make receipts and then he will return to the United States.

However, he will probably return to the Caribbean soon, as he has worked in the region for the past 12 years.

‘I don’t wish to anymore financially beleaguered properties on Cayman,’ he added.