Business

November Closing Date For Grand Lucayan Deal

NASSAU, BAHAMAS – The future of Grand Lucayan Resort remains in limbo as news of another extension to negotiations for its sale broke.

Published

3 years ago

September 23, 2022

Berthony McDermott

NASSAU, BAHAMAS – The future of Grand Lucayan Resort remains in limbo as news of another extension to the negotiations for its sale broke early this afternoon. These multiple extensions in the due diligence process is causing some to question the security of the deal.

After several extensions to the due diligence period, Lucayan Renewal Holdings Limited Chairman Julian Russell announcing the final closing date for the Grand Lucayan Resort has been extended to November 15th.

A statement today reads, “We anticipate that the sales process will be completed consistent with our revised timelines.”

Last Thursday, the special purpose vehicle for the sale of the resort announced a seven-day extension ending Thursday.

Minister of Tourism, Aviation and Investments Chester Cooper speaking to the issue ahead of this week’s cabinet meeting.

When the deal was announced back in May, government said the deal with Electra America Hospitality Group was subject to a 60-day due diligence period with closing no later than 120 days.

Back in August, the period was extended by 45 days to September 15th.

And, those deadlines have passed. The multiple extensions and failure to announce the closure of the deal have left many to speculate if the two sides have hit a roadblock.

While appearing as a guest on On the Record this week, FNM Chairman Dr. Duane Sands suggesting it’s time for a cabinet shuffle, claiming the minister responsible for Grand Bahama has underperformed.

Meanwhile, the statement today also reading, “The board of LRHL remains committed to ensuring that a credible plan and shared vision for the resort is realized – a plan that will provide jobs, entrepreneurial opportunities and strengthen Grand Bahama’s economy.”