Restoration Cayman says it will pay off debt by April deadline
The company that owns Treasure Island Resort says the property has been prematurely listed for sale.
A spokesman for Restoration Cayman Ltd. said Thursday that it plans to make full and complete payment of its debts and retain ownership of the hotel, which was put on the market this week for $15.45 million.
Harry Lalli, general manager of Treasure Island, said Restoration Cayman would pay the money it owes to Scotiabank before an April 12 deadline. He said the company plans to invest in upgrading the resort itself.
Treasure Island, which currently caters largely to a mix of tourists and long-stay guest workers, was listed for sale by real estate agent Re/Max at the request of the bank, according to realtor Kim Lund.
Although the company is marketing the property for sale, Restoration Cayman still has six weeks to come up with the cash to pay off its debts with the bank and prevent the property from being sold, Mr. Lund confirmed.
In a statement to the Cayman Compass, Mr. Lalli said, “Treasure Island cannot be conveyed until after April 12. Restoration Cayman, the borrower under the Scotiabank loan fully intends to make a full and complete payment on the loan prior to April 12, thereby terminating the receivership and eliminating any possibility of a transfer of the property after April 12.”
He said the company had brought the property out of receivership a decade ago in the wake of Hurricane Ivan and had invested US$10 million in it to date.
“Restoration Cayman remains committed to the full-scale positioning of Treasure Island as a first-class resort and hospitality asset supporting the Grand Cayman economy and tourism industry,” he said. Mr. Lund said the company is marketing the property for sale on behalf of the receiver and the bank in an effort to line up a buyer by the April date.
“Hopefully they will be able to pay off the loan and keep the property. If not, the aim is to have a buyer lined up,” he said. The 280-room resort is listed for sale on the Re/Max website.
The beach-front condos are not part of the sale. They are privately owned under a strata plan. The two properties share easement rights, giving the Treasure Island resort beach access.
The Re/Max listing states, “Rare opportunity to acquire a Hotel/Residences/Commercial units in a prime, high traffic location. The property and site offer tremendous potential for redevelopment or improving existing operations.”
Neither Tammy Fu nor Eleanor Fisher, of receivers Zolfo Cooper, responded to requests for comment.
A press release in November on behalf of the receivers said Restoration Cayman, the legal owner of Treasure Island, had been put under receivership by virtue of “powers contained in the security agreements entered into between the secured lender, Scotiabank & Trust and the company.”