Categorized | National News


In preparation for  a debate on the purchase of the Grand Lucayan Hotel in Freeport Grand Bahama,  the leader of the official Opposition, Philip Davis  has demanded  a series of documents from the government.

In a letter to Prime Minister Doctor Hubert Minnis,   Mr. Davis requested the information on the acquisition of the resort   if  members of the House of Assembly are to deal with  a government resolution and guarantee of  a loan for the resort.   

Mr. Davis, the MP for Cat Island, Rum  Cay and San Salvador asked the Prime Minister for the following:

I. The signed Sales Agreement.

2. Description or list of all the properties and assets being acquired including inter alia hotels, buildings, golf courses etc.

3.   Copies of the recent appraisal of the resort properties and quantity surveyors report on estimate of cost of repai rs and restoration of the hurricane damaged properties  and inventories to make them operational;

4.   Particulars of the due diligence performed by the Government prior to concluding the purchase agreement including profit and loss statements;

5.  Particulars  of hurricane related insurance claims and amount of settlement received by Vendor  which should have been part of due diligence recovery  and purchase negotiations;

6. In addition to the purchase price of$65million, what are the projected costs of insurance coverage, staff benefits and severance, operation and maintenance over a month ‘s period, bearing i n mind i t would normally take 6 months for closing on a sale of this magnitude after a buyer has been identified. Are there any other liabilities?

7. Particulars of the business plan to support this transaction;

8.   Source and particulars  of funding of operational  costs and when will

Government   seek Parliamentary  approval of same;

9.   The required prospectus being circulated in pursuit of interested purchasers, the particulars of  any interested investors with whom negotiations are being conducted;

10. Plans for airlift and operation of the casino;

II. Particulars of the professional advisors and estimated cost of their services in relation to this exercise and

12.Quantum of stamp duty and closing costs being borne by Government. 

Written by Jones Bahamas

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