The company that owns the Treasure Island resort on Seven Mile Beach has gone into receivership amid mounting financial difficulties.
The future of the 280-room resort – which caters largely to a mix of tourists and longer-staying guest workers – is uncertain following the revelation last week that receivers had been appointed for Restoration Cayman Ltd., the legal owner of the property.
A spokesman for the Treasure Island management team said on Saturday that the resort was still operating as normal, but declined to comment further.
Tourism Minister Moses Kirkconnell said the West Bay Road property, at the gateway to Seven Mile Beach, was an important one.
He added, “The Treasure Island property has been an important part of our tourism product for many years. We trust this current issue can be resolved in a timely manner.”
In a press statement on Thursday evening, financial and corporate advisory firm Zolfo Cooper announced that its partners, Tammy Fu and Eleanor Fisher, had been appointed as joint receivers of Restoration Cayman.
The release said the receivers had been called in by virtue of “powers contained in the security agreements entered into between the secured lender, Scotiabank & Trust and the company.”
Under Cayman Islands law, secured creditors can appoint a receiver to take charge of an asset, subject to the terms of the agreement between the two parties.
Receivers are not supervised by the court and usually owe their duties primarily to the secured creditor, not the company.