May 2013 Financial News

Search still on for Almond Beach Village buyer

May 13, 2013

THE primary objective of the Almond Board of Directors is to find a buyer for Almond Beach Village.

Chairman of Almond resorts Incorporated (ARI) Arthur Lok Jack, and his deputy Gervase Warner, said as much as the search continues for a buyer for the hotel.

It was last year when the St. Peter-based hotel was closed leaving over 500 persons out of work and creating some setbacks in this country’s tourism industry. Central Bank of Barbados has said that the closure of Almond Beach Village is one of the factors contributing to lower tourism growth.

The two ARI officials pointed out recently that several parties continue to express an interest in the acquisition.

“To date however, none of the interests have translated into acceptable offers but in the coming weeks the Directors expect to progress meaningful negotiations with a preferred bidder,”said the two officials who were reviewing the six month financial statements for Almond Resorts Incorporated.

The operations of the company currently consists of the maintenance of the Almond Beach Village property, holding of an investment interest in Casuarina Beach Club Limited, the administration of accounts and the payment of the necessary interest costs, administrative salaries, insurance, property taxes and general property upkeep costs.

The unaudited results for the six months to March 31, 2013, show a loss of $3 million compared to $15.5 million a year earlier.
“The net loss of $3 million for the six months...essentially reflects these costs as there is no revenue being generated by the company. Asset value preservation has been the key theme during this period and we continue to minimise all costs up until the sale of either the business or its assets,” they declared.

The two ARI officials explained that on January 10 this year Couples Resorts entered into an eight month lease of Almond Casuarina Beach Hotel from Casuarina Beach Club Limited with an option to acquire the hotel during the lease period.

“There is also an option to extend the Casuarina lease for a five year term following the expiration of the short term lease,” they further explained. ARI holds a 35 per cent stake in the Casuarina Beach Club Limited.”


Source:
Barbados Advocate
Monday May 13, 2013

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=30553