Businesses voice their concerns about failed deal between Kerzner, Brookfield

Thu, Jan 19th 2012, 08:42 AM

Amidst looming uncertainty about the fate of Atlantis and the One&Only Ocean Club, several Bahamian businesses voiced their concerns on the situation.
"We are concerned and we are watching it, definitely," said Linda Lam, co-owner and co-manager of Mike's Chinese Custom Tailoring.
Mike's has supplied Atlantis with uniforms and other related services for over 10 years, Lam said.
"We do quite a bit of work for Atlantis, with the uniforms and everything, so we keep a little bit busy with that.
She said so far, fears of Atlantis' fate has not hampered business.
"I don't know whether anything will happen in the near future, but right now we're still getting work from them like we usually do," she said, adding, "We can only hope for the best."
Erica Collie, a representative from Seahorse Sailing Adventures, located on Paradise Island, also voiced her concerns.
"We're just sitting, watching and waiting to see what happens, as is the rest of The Bahamas," she said.  "It would affect us," she added.
Seahorse Sailing caters to locals and tourists alike, with such activities as snorkeling and sailing.
"We are just a little nervous about it, but I guess that's business, things happen for a reason," she said.
Janice Saunders, director at Majestic Tours, said she is not concerned "because they (the owners) won't let it fall apart".  Majestic Tours, said Saunders, which offers tours of Nassau and Paradise Island, has been receiving business from Atlantis since "day one".  "And before that, Resorts International," she said.
"Somebody will have to come to the rescue if Mr. Kerzner totally disappears, but I don't think he'll disappear.  I don't think anything is going to happen with Atlantis, they will run the operation as is, they can't fold it up.  Nothing [is going to] change. Life goes on; business has to go on."
Yesterday The Nassau Guardian reported that Brookfield Asset Management canceled its offer to exchange approximately $175 million of debt for ownership of Kerzner International's Bahamian and Mexican properties, throwing into limbo Atlantis and Ocean Club, as well as thousands of jobs at those Paradise Island properties.
The decision came after a group of senior Kerzner creditors took legal action against the Canadian asset management firm, alleging that Brookfield had negotiated a "sweetheart deal" that would negatively impact the interests of other lenders.
Under that deal, Kerzner would have entered a four-year agreement to manage Atlantis and a 15-year agreement to manage Ocean Club.
The arrangements associated with the takeover of Kerzner International's Paradise Island properties also called for the new owners to refinance Kerzner's $2.5 billion loan within the next two years.
But the legal action by the senior lenders led to Brookfield's pull-out.

Click here to read more at The Nassau Guardian

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