NASSAU, BAHAMAS — The former lead negotiator of the committee to sell the Grand Lucayan Hotel said yesterday that government must provide a full explanation as to why the deal has yet to close, with the purchaser- the Electra America Hospitality Group.
The Board of Lucayan Renewal Holdings has announced that it has provided a further seven-day extension to the due diligence period for the sale of the Grand Lucayan Resort to the Electra Hospitality Group. The company had agreed to purchase the hotel property from the government for $100 million.
“The board of Lucayan Renewal Holdings Limited has been asked by the attorneys for Electra America Hospitality Group for a further seven-day extension to consider outstanding matters related to the sale,” the Board said in a very brief statement on the matter.
Lucayan Renewal Holdings Limited is a special purpose vehicle that was created to oversee the sale and manage the resort’s operations, noted in its statement that yesterday was the end date for the due diligence. The previous end date for the due diligence was September 15th.
Attorney Michael Scott QC told Eyewitness News: “The only outstanding matter is the scale and scope of the government’s commitment to the renewal of the international airport in Freeport. Having regard to the fact that this is a further extension they owe the Bahamian people a full explanation since they criticized our side claiming that we didn’t do so.”
Scott said that the announcement of a further extension “doesn’t give me or perhaps anyone else any basis for encouragement,” as he described the Grand Bahama International Airport as a potential ‘dealbreaker’”.
The government announced on May 11th that Lucayan Renewal Holdings LTD signed an agreement with Electra American Hospitality Group to buy the Grand Lucayan Hotel for $100m. At the time it was noted that the deal was subject to a due diligence period with closing no later than 120 days.
Back in early August, the Board of Lucayan Renewal Holdings said that the sale of the Grand Lucayan Resort was “progressing steadily and on track for completion”.
A release from the board at that time said “we anticipate no other material changes.”
Electra America has committed to providing an estimated $300 million in construction and renovation funding to rebuild the Grand Bahama resort.
The construction phase is expected to produce 2,000 jobs, with another 1,000 permanent jobs expected once the resort is fully reopened.
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