Resort under receivership

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. 

Treasure-Island

Receivers have been appointed to Restoration Cayman Ltd., which owns Treasure Island. – PHOTO: CHRIS COURT

4 COMMENTS

  1. I have to agree with Robert’s comments. Other than the pool and hottub, which could use some updates – the resort itself is dated and worn out. The one time I stayed their, it was a complete dump and the rooms were in poor condition. Even if it is not torn down, hopefully a smart developer will come in and provide it with the capital necessary to renovate the structure and facilities.

  2. In a way this is simply history repeating itself.

    When TI was in receivership before Ivan at least one developer tried to buy the place with a view to demolishing it all and re-building – even back then the only real value in the site was the land it stood on. I think that deal fell through because the official receivers just weren’t being realistic about this and held out for too much money, maybe this time sense will prevail.

    After Ivan it always amazes me that anyone bothered to try and re-open the place. I have friends who have lived there and a couple who are still living there – it is a mess.

    In fairness to the owners it’s an inherited mess because the building standards in both the resort and the condos leave a lot to be desired but the harsh reality is that to properly fix everything that’s wrong with the place will cost a lot more than redeveloping it. The bottom line is the whole project was a bodge when it was first built and nothing will fix that except a wrecking ball.

    If Scotiabank have got a lot of money invested in TI more fool them. It wouldn’t have taken any half-decent building surveyor long to tell them they were taking a big risk.

  3. The hotel has been a mess for years. When this last group bought it they promised to fix it up and they did not. The condo’s which are now called Sunset Cove are actually very nice. That is why they changed their name so they would not be associated with the mess that is called TI. It would be a real plus for the island if the hotel was ripped down and rebuilt

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