Lenders would not refinance Kerzner International's $2.3 billion loan because they did not think that Atlantis could co-exist alongside the Baha Mar development, The Nassau Guardian can reveal.
According to information obtained by this newspaper, the Ingraham administration believed that the lenders would have rolled the loan over were it not for the Cable Beach redevelopment.
In late November, Kerzner International Chairman and CEO Sir Sol Kerzner announced that his company was transferring ownership of Atlantis Resort and the One&Only Ocean Club to Canadian real estate conglomerate Brookfield Asset Management.
But the takeover agreement has not been made public.
On Friday, the Official Opposition renewed a demand for the government to make the details public.
Kerzner's ownership change comes as the Baha Mar development moves into full swing.
It is projected that Baha Mar will boost the economy and inject substantial revenue into the country over the next three years.
However, The Nassau Guardian understands that the government thinks the resort's long-term success is still unclear, partly because of its lack of a theme.
In comparison, the government sees Sol Kerzner as a detail-orientated man with well-marketed hotels and a vision.
As Kerzner executives were about to announce a $175 million debt-for-equity swap, The Nassau Guardian understands that the Ingraham administration felt that Brookfield was not the right fit for Atlantis due to the company's lack of experience in the hotel industry.
Brookfield is a global asset manager with approximately $150 billion in assets.  Although Kerzner retains management control of the Paradise Island properties, The Nassau Guardian has learnt that its four-year management agreement can be terminated at any time if Brookfield brings on a new partner who wishes to change the company's direction, or if Kerzner does not meet growth benchmarks.
According to a source, Brookfield has sought a stamp tax reduction from the government, something the Ingraham administration is said to be considering.
The Nassau Guardian can also reveal that in late November, Brookfield had not formally applied for required government approvals although the deal was set for a 2011 year-end conclusion.
Up until the time of the announcement of the sale, Prime Minister Hubert Ingraham advised that he had meetings with Brookfield and several meetings with Kerzner International to discuss the proposed transaction.
Brookfield agreed to continue with new investments of around $50 million per year, maintain the current employment levels of some 8,000 employees, and continue to market The Bahamas brand at existing levels.
The Guardian has learnt that the government views it as important to the country's economic stability that Kerzner International manages Atlantis and One&Only Ocean Club.
The arrangement made with Brookfield saved the properties from going into receivership.
The Nassau Guardian also understands that at the time of the announcement, the government was concerned that targets set by Brookfield for Kerzner under the management agreement would be difficult to achieve, and could lead to staff reductions at the properties.
However, both the prime minister and Sir Sol Kerzner have said the Paradise Island jobs are secure.
When he spoke in Parliament on the matter back in November, Ingraham also said it was "regrettable" that the Christie administration allowed Kerzner International's Paradise Island properties to be mortgaged to the extent of $2.3 billion -- mortgages which were held by lenders outside of The Bahamas.

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