Oasis sale in trouble?

By LEDEDRA MARCHE

Senior Freeport News Reporter

Reports continue to persist that the $40 million Royal Oasis sale between World Investment Hold-ings and Lehman Brothers has fallen through.

Sources say that the deal was unhinged as a result of an investigation of some of the principals involved.

Newspaper reports named investors Keith St. Clair, Idalberto Rodriguez, Viridian Barbeito, Seyed Moghani, Fernando Alvarez Jr. and Fernando Alvarez Sr. as the principals behind WIH, a U.S.-based firm.

In early July, Prime Minister Perry Christie told The Freeport News that two bidders were vying to purchase the distressed resort. Six weeks later, this daily confirmed that WIH had beat out Harcourt Developments, a property construction and management company based in Dublin, Ireland.

The Harcourt Group had been at the table several months before and in fact were negotiating with the Lehman Brothers about a year and a half earlier when the initial deal fell through.

WIH attorney Jethro Miller confirmed last month that the company was formed in July and many of the six investors are Cuban-American.

WIH was created for the specific purpose of the Crowne Plaza Golf Resort and Casino at the Royal Oasis project. The contract with Lehman Brothers, the mortgagees of the resort, was signed on August 15.

Last month Miller revealed that the company was merely awaiting approvals from the Foreign Investment Board, The Grand Bahama Port Authority and the Central Bank.

The deal involves the purchase of the 424-acre resort property, which comprises a casino, 965 rooms between the towers and the country club, 98 timeshare units, the two golf courses and Caribbean Utility.

The targeted completion date was October 16.

An official announcement of WIH's involvement in the sale has yet to be made by the government and, according to Miller, had been deferred until after the completion of the purchase.

Miller also noted in September that in the event the approvals were not in hand by October 16, there may be an accommodation, but he had hoped there would be no need for an extension.

However, reports that the deal was in trouble surfaced long before Monday.

In attempts to confirm these reports yesterday, The Freeport News contacted Grand Bahama Port Authority Chairman Hannes Babak.

"As far as we're concerned, we do not have any knowledge of that. There is still a contract pending," Babak said.

Babak added that any further information should be directed to Jethro Miller, the company's representative or the government.

Asked whether the licence application which WIH had submitted was approved, Babak said, "We cannot approve a licence before a deal is concluded."

When we contacted the Prime Minister's Office, we were informed that he was in meetings and referred to Managing Director of the Hotel Corpora-tion Dr. Batron Bethel.

But Bethel was not in office and reportedly would not be returning for the day.

The Freeport News also telephoned Minister of Tourism Obie Wilchcombe and Miller's law office yesterday several times for confirmation or a comment, but was unsuccessful up to press time.

© 2006 The Freeport News