Statement by Almond board
This is an edited version of the Press statement issued yesterday by the?board?of?Almond?Resorts?Inc.
TODAY, APRIL 3, 2012, at a special meeting of the shareholders of Almond Resorts Inc. (ARI), the deputy chairman Gervase Warner notified shareholders that the board saw no alternative but to close the Almond Beach Village property on or about April 30, 2012, although consultation with the staff’s union and their delegates must now be held.
Through presentations from the company’s CEO, CFO and the investment bank firm handling the search for investors and buyers for Almond properties, it was explained that this assessment was regrettable but compelling at this point in time because the hotel would become unable to pay its bills.
While there are three potential buyers who are currently in discussion with the board to purchase the Beach Village property, those negotiations are likely to take several months before a deal can be concluded and all current options require the closure of the property. Almond Beach Club, however, has buyers who are closer to making a decision and could be sold as a going concern within a reasonably short time, if negotiations proceed well.
Given the constraints of no additional cash injections to fund the significant negative cash flows that are projected for Almond Beach Village, the hotel will not have enough revenue to pay its bills. The only way that Beach Village can be sustained would be with a significant injection of additional capital, which is not forthcoming from the bank, shareholders or other investors.
Furthermore, the potential buyers (who have engaged with the ARI board) for Beach Village are not interested in Almond Beach Village as a going concern but are only interested in the physical asset.
Mr Warner assured the meeting that the board of directors remained open to proposals from the employees and the Government but such a proposal would need to have support from Scotiabank or another financial institution and would need to demonstrate how new capital would get injected into the company for the necessary upgrade to the Beach Village property.
Lastly, in response to a question about what would happen to the employees, the meeting chairman expressed the board’s emotional regret and promised that employees would be treated fairly and with respect and would receive full payment of amounts due. The company would also provide Employee Assistance Programmes as well.