Florida Real Estate Developer Ginn Continues Efforts to Restructure Credit Suisse Credit Facility
Ginn President, Robert Gidel issues an interim statement as negotiations continue in this ongoing story.
Palm Coast, Florida – August 1, 2008 – Two Ginn Company affiliated entities failed to make payment on both principal and interest payments on first and second-lien debt due June 30, 2008. (see story) The lender granted a 30-day forbearance which expired yesterday. Both parties continue to negotiate a solution. Ginn owns and operates several properties in Palm Coast, Florida; Hammock Beach, The Conservatory, Yacht Harbor Village, and The Gardens. They are not affected by these credit facilities. Four Ginn properties are affected; Ginn sur Mer in the Bahamas, Tesoro in Port St. Lucie, Quail West near Naples, and Laurelmor, in the western NC Mountains.
In the meantime, Ginn President Robert Gidel issued an interim statement reproduced here:
Statement by Ginn President Robert Gidel
"As we indicated to you last month, Ginn-LA CS Borrower, LLC and Ginn-LA Conduit Lender, Inc., the borrowing entities that entered into a credit facility with Credit Suisse, had entered into a 30-day agreement with the lending groups to engage in further negotiations in order to restructure the loan that was secured by property at Tesoro, Quail West, Ginn sur Mer, and Laurelmor."
"Although negotiations with the lending group have been ongoing and are continuing, our agreement did expire yesterday. Negotiations for a resolution are continuing and at this time we remain optimistic that this credit facility will be restructured in a manner beneficial to all parties."
"We want you to know that throughout the negotiation with the lending consortium, our primary focus has been on ensuring that our members and property owners are taken care of during, and after, this period. However, the lack of an agreement between the Borrowers and the lenders means that the Borrowers will have to make difficult decisions relating to its management and oversight of these four properties."
"The Borrower may have to discontinue the payment of certain dues and POA assessments on the lots that they own, which will put stress on the operations of the Clubs at Tesoro and Quail West."
"Regardless, as the current managers of the projects, we will do everything possible to provide for the orderly transition of these assets for the benefit of the Members, lot owners, and lenders."
"All of the remaining communities and development projects that The Ginn Companies, LLC, manage are separately owned and funded by the partnerships and LLC’s that own them. It is very important to understand that these projects have no financial relationship with those properties secured by the Credit Suisse loan, and therefore, this event will not cause any change in the direction or management of these properties."
"We are managing our way through some very challenging times in both the real estate market and the general economy. As previous cyclical downturns have shown, these times will eventually pass, and in the interim, we intend to do whatever is necessary to position the properties and developments that we manage to survive this period and be ready for growth when the market improves."
No Connection?
I’m Ginn’n to see the PR workers trying to give confidence to owners, as they don’t want panic. But the statements that there is no connection is only a legal statement about the structure they set up for isolating developements. They are Horizontally and verticaly intregrated and that’s the connection. If one bank sees problems the others will take note and start to demand payment as they won’t want to be at the bottom of the list when bankruptcy is filed. The courts then will freeze the assets and make payments on a percentage less than what they are owed. The Process will attach all Ginn’s assets and could last years, with nothing growing but weeds on the properties. At least then the wild hoggs can move back in to the Conservatory and eat the grubbs.
are you serious
You should reall get informed! they dont owe any other banks money…. the operating "partner" is the one that is at stake with ginn on everything.
The End is Near for Ginn
The incriminating evidence that I have regarding Ginn’s literal theft of land from Bahamians in West End is appalling. The tactics they used to acquire the land is criminal and Bobby Ginn knows it. How could be think that no one here in the Bahamas would ever find out the deception and theft of the land? He must think that ALL BAHAMIANS are naive in West End. Perhaps he should go back to former Bahamas Prime Minister Chrisite and Member of Parliament Obie Wilchcombe to get back the bribe money he paid them to aid in the land fraud scheme. There is much shame and scandal in the Ginn family.