Lehman Brothers, mortgagees of Driftwood Freeport Ltd. and World Investments Holdings (WIH) signed a $40 million deal two weeks ago.
“Both sides are working toward closure within 40 days. After which, full details relating to the operations of the hotel and casino will be disclosed,” said Wilchcombe.
The group out of Florida reportedly has big plans for the distressed property which includes a towers, country club and casino.
And, the tourism minister says the contract gives all of us a reason to smile.
“The investors have promised the creation of a new experience encompassing the International Bazaar and the Goombay Park,” he noted.
The resort closed down in September 2004 after Hurricane Frances affected use of 965 rooms and 98 timeshare units on its inventory, taking with it the jobs of some 1,300 employees.
Consequently, eight months later, government paid out an unprecedented $5 million of the $6.12 million to 900 displaced workers owed by Driftwood.
The remaining $1.12 million has yet to be paid.
However, Prime Minister Christie announced recently that the $5 million pay out government made to the workers will be reimbursed in full.
He noted too, that the balance of the money owed ﾗ the $1.12 million ﾖ will also be paid to the displaced employees.
Additionally, Lehman Brothers reportedly owes $2.7 million to the Grand Bahama Port Authority; $2.5 million to National Insurance; $4.1 million to the Workers Pension Fund; $13 million in casino taxes; and more than $55,000 to vendors in Grand Bahama.
“We’re being very cautious of what we say and that is because I’m not going to create any level of expectation that I won’t be able to deliver if all does not go well over the next 40 days of discussions that the purchaser and the vendor are having right now,” Wilchcombe told reporters in Grand Bahama late last week.
“I believe that in 40 days, we will be in a position to make some announcements and that is if we allow for the delicacy of these discussions to take place away from any injections from those of us who are privy to that information and could prematurely release it to the public.”
Wilchcombe believes government should wait and allow the players to sit and talk, and then come back to the country.
” I am excited about what I’ve been told, but I’m guarding my excitement until I see it happen and the deal’s all signed,” he said.
By LEDEDRA MARCHE, Senior FN Reporter
