Friday, May 18, 2012

Palmyra receiver moves to Plan B as auction fizzles - Business - Jamaica Gleaner - Friday | May 18, 2012

Palmyra receiver moves to Plan B as auction fizzles - Business - Jamaica Gleaner - Friday | May 18, 2012: "Plans to sell the Palmyra Resort & Spa at auction have failed, according to well-placed sources, despite two extensions on the original sealed-bid deadline.

The Financial Gleaner has learned that Palmyra receiver Ken Tomlinson has switched to Plan B and is now hoping to sell the 16-acre beachfront property via private treaty.

Racebrook Marketing Concepts was initially hired to auction the property, and while the international marketing firm said there was early investor interest from Asia, Australia, Canada, the United States, South America, Europe and the Caribbean, the deadline for sealed bids was pushed back from March 28 to April 18, and later to April 23."

At the first postponement, Racebrook said it would give bidders more time for due diligence and preparation of their bids.
On Tuesday, Steve Madury of Racebrook referred queries back to Tomlinson when asked why the property was pulled from the auction block.
No viable offers
But well-placed sources say no viable offers were received and that Tomlinson has now taken over negotiations with "a number" of interested investors.
Palmyra is an incomplete development that was taken over by its bankers last year and placed in receivership.
The owners of the project fell into arrears on US$110 million of principal loans - US$22 million of which was financed by RBC Royal Bank Jamaica, while the other US$88 million is held by National Commercial Bank and its investment arm NCB Capital Markets as well as bondholders.

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