Kerzner International Holdings Limited and Brookfield Asset Management have finally consummated a deal with the assistance of the Bahamian government.
Atlantis and the One&Only Ocean Club on Paradise Island will be taken over by the Canadian conglomerate after forgiving $175 million in junior debt.
Kerzner has agreed to a management contract at Atlantis spanning at least three years, while it will operate the One&Only Ocean Club for at least 15.
The Government of The Bahamas has stepped in and agreed to the deal based on three "conditions".
According to the Office of the Prime Minister, Brookfield must maintain a staff complement of at least 8,000 employees. It must also invest at least $50 million into the property each year and maintain current marketing standards.
"Having been formally satisfied that Kerzner's syndicate of lenders had agreed to Brookfield acquiring the ownership interest in Paradise Island interests, the Government of The Bahamas has provided the requisite approvals for the restructuring transaction, on three conditions," the prime minister's office said.
In a separate transaction, Kerzner has also sold its 50 percent stake in Atlantis the Palm Dubai to resort co-owner Istithmar World, a unit of Dubai World, for $250 million.
The long-awaited deal seemingly brings to an end Kerzner's restructuring of $2.6 billion mortgage debt.
Back in November, Sir Sol Kerzner, the founder of the Kerzner empire, announced that Brookfield would acquire Atlantis on Paradise Island, the One&Only Ocean Club, and the One&Only Palmilla in Mexico.
That deal was derailed when a rival lender, Trilogy Portfolio Company, filed legal action against Brookfield, claiming it had orchestrated a "sweetheart deal" with special servicer Wells Fargo.
After months of silence, a second lawsuit surfaced against Brookfield in April.
Orix Capital Markets, holding $27 million of Kerzner's debt, claimed Brookfield had tried to push through virtually the same deal, but had "bought the cooperation" of other lenders.
Brookfield said the lawsuit was dropped within hours.
In addition to government guarantees, this new deal differs in that it fails to include the One&Only Palmilla in Mexico.
Kerzner's management contract has also been extended for "a minimum of three to six years", rather than just three under the first agreement.
Andrew Willis, senior vice president of communications and media at Brookfield, did not comment on the deal.

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