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Kerzner Seeks Extension of $2.78 Billion of Mortgages

Kerzner International Holdings Ltd., the company that built the Atlantis resorts in Dubai and the Bahamas, is negotiating with creditors to extend maturities on $2.78 billion of mortgages due next month, according to three people familiar with the talks.

Holders of commercial mortgage-backed securities may receive more than $100 million of principal in exchange for the two-year extension, said the people, who asked not to be named because the talks are private. Kerzner may default on the debt, due Sept. 9, unless a deal is reached, the people said. It received a waiver on its operating company debt earlier this year, one of the people said.

The company, which also runs seven One&Only resorts, has struggled with debt since the 2008 financial crisis reduced hotel values and room rates. Kerzner’s owners include Dubai World’s Istithmar, Goldman Sachs Group Inc. (GS)’s Whitehall Funds, Colony Capital LLC and Sol Kerzner, the company’s founder.

Posted in Business

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