According to two new Nassau Guardian articles published December 30, 2008, the Ginn Resort company has finally a settlement with their creditors (many months in the making) to deal with their $675 million defaulted loan.
Ginn has confirmed that “the settlement relates to the four communities that serve as collateral for the secured credit facilities: Tesoro in Port St. Lucie, FL., Quail West in Naples, FL., Ginn sur Mer in Grand Bahama, and Laurelmor in Boone, N.C. Sales at the four communities had been severely affected by ongoing economic pressures and the drastic downturn in the real estate market, which ultimately led to a default…”
The Nassau Guardian reports that two of the developments: Tesoro and Quail West, have filed for Chapter 7 (a type of bankcruptcy which starts the liquidation process), while Laurelmor will be sold outright.
The details of the joint venture agreement regarding Ginn sur Mer have not yet been released but these articles also mention the significance of the $160 million that the development company placed in escrow to address infrastructure costs which makes completion of the Ginn sur Mer development still seem favorable. Adding to this, they were able to raise more than $300 million in lot sales in 2007, and construction is still in progress.
We only hope that Ginn is able to resolve all of their credit problems in a way that allows Ginn sur Mer to continue.