Ginn Credit Suisse Negotiations Apparently Not Successful
A flood of emails and phone calls today signal big happenings in the GINNdom
Palm Coast, Florida – October 1, 2008 – Since the Ginn Company went into default on a $675 million Credit Suisse credit facility June 30, Ginn watchers have been anxious about the outcome. Inquiries have been politely answered with "negotiations are continuing." Suddenly today, my email and phone were flooded with strong hints from known sources as well as anonymous ones that something big was happening in the GINNdom.
The Ginn Company has not released any statement. Nor have they confirmed or denied any of the purported events of the day. But here’s what I’ve put together from the several inputs. While my conclusions are unconfirmed, therefore speculative, the sheer number and consistency of content of today’s communications lends credence.
It appears that the negotiations with Credit Suisse to modify and extend the $675 million credit facility failed. I understand that Credit Suisse is exercising its rights to take the collateral underlying the facility. The collateral consists of properties in four Ginn developments:
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Ginn sur Mer in The Bahamas
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Tesoro in Port St. Lucie, FL
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Quail West in Naples, FL
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Laurelmor near Boone, NC
Other Ginn communities are not directly affected by Credit Suisse’s actions. I’m told the three months of negotiations failed in spite of tireless efforts by those representing Ginn. I can only speculate on Ginn’s future roll in these communities. A permanent or interim management contract might be a possibility.
I recently published a rumor that Ginn was considering outsourcing his sales and marketing functions. Apparently that rumor gained momentum today. Sources were unwilling to confirm details, but there were apparently several staff cuts today, including some with long tenure at the GINNdom.
Ginn, finally forced to make bold moves as his options become more limited, seems to be cutting deeper into what was once his core staff, those who were with him during the good times. Perhaps these were not the right people to help Bobby through today’s tough times. Clearly reducing unessential and/or unproductive staff will help mitigate the cash flow crisis. Although the result of the Credit Suisse negotiations was not what was hoped for, its conclusion might allow Ginn to focus more on his remaining assets.
This story is just beginning to unfold. I will continue to update you as facts become available. If you wish to provide additional information, please use the "contact us" button on the left of this page.
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Down for the count,6,7,8,
Bobby has taken it on the chin with the economy going south. The referee is about to call the match at the 10 count. He will be visited by the ghost of Christmas past, not Santa this year. The top always crumbles first on any pyramid, as the view is better from up there, but the weather hits you first.
GINNdome
George-its painfully obvious that you are NOT a fan of the Ginn corporation…
Have you been personally hurt by purchasing a ginn property only to see it depreciate in value recently?
Because if not, I can only ask why you would cheer a downfall of a company that basically IS palm coast?
If GINNdome is essentially crumbling (as you claim ever so slowly) do you know how many family’s and jobs are affected by this around the area?
I mean, its not like EVERYONE around palm coast is a complaining retiree with nothing else to do all day but to cheer for the Ginn collapse…
some people have life’s to maintain, and rely on this company.
so bobby gives 4 communities to lubert adler…big deal…what do you think lubert adler will do with them?
sell them for a profit!! just like bobby WAS trying to do.
George-your petty comments are not helping anyone…think before you speak child.
Ginn Credit Suisse Negotiations, etc.
I don’t think that "calling a spade a spade" is the same thing as cheering anyone’s downfall. Maybe if GINNdom would call a spade a spade, and not engage in "vauge, platatudes, and hints" nobody would have to report for them. There are a LOT of people that have been harmed by GINNdom’s decisions, and Ginndom’s failure to appreciate the "responsibility" that decisions and ego promotion has impacted a LOT of people and their families.
When you are the head of a Corporation there is a "duty and responsibility" to be a good steward for the people that put their trust and their families futures in your hands.
Train Wreck
Well said, Tom.
George, you are kidding, right? I am no fan of Ginn, but what you are doing is the equivalent of cheering a train wreck. What good can come out of any company’s failure? We are talking about employees and their families, of not just Ginn, but also of the many companies affected by Ginn’s demise. Your perspective, George, is disburbing to say the least.
Take Responsibility
Anyone who thinks the market is to blame for Ginn’s fallout is still drinking the GINN kool-aid so to speak. The same debate that applies to the $700 billion government bail-out applies here (Should people have to take responsibility for their own actions or should the market and lenders be blamed?). There is a certain amount of responsibility that must fall on Ginn. I don’t want to see anyone fail, but at the same time, Ginn has made many bad business decisions that are ultimately to blame for what seems to be the impending demise of the company. And why didn’t Lupert-Adler keep better tabs on their investment? I can only deduce that decisions were made in short-sightedness because surely anyone not blinded by greed would see that this business model would never survive the long run.
Calling a spade a spade
Pat-
I understand that there are a lot of pissed off ginn buyers, I also understand that present and past bobby ginn has not been the most reputable business man throughout the places he has been.
But the fact remains, he is a businessman. This is what businessmen do in Business’s in every different sector and every different industry
across this nation-they find ways to MAXIMIZE thier profits and this is what they live by. Greed.
Trust me-thier goals at work are not to make sure everyone likes them, its to make money, and the sky is the limit.
Ginn is not the only company that is hurting as a result of greed, do I even have to list the amount of companies who have either filed ch11 or have financial troubles these days?
Investors who got burned by Ginn are just mad at themselves for making a poor purchasing decision and for basically getting "sold".
So they cheer on the downfall of a company and make thier not so funny comments about a company that is 90% of a cities economy…
to make themselves feel better.
if you call that a spade then we obviously have different trains of thought.
Tom
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NEW YORK (Standard&Poor’s) Sept. 29, 2008–Standard&Poor’s Ratings Services today withdrew its ‘D’ ratings on Florida-based Ginn-LA CS Borrower LLC and Ginn-LA Conduit Lender Inc. and its recovery ratings on $675 million of credit facilities (see list). Subsequent to the company’s Chapter 11 bankruptcy filing, we determined that we would not have access to sufficient information to continue surveillance on the company’s recovery ratings. RATINGS WITHDRAWN Ginn-LA CS Borrower LLC Issuer credit rating To From NR D $165 million synthetic revolver To From NR D (recovery rtg: 3)$385 million first-lien term loan To From NR D (recovery rtg: 3)$125 million second-lien term loan To From NR D (recovery rtg: 6) Ginn-LA Conduit Lender Inc. Issuer
A little bit of early History of Palm Coast
For the new arrivals; perhaps you would care to see how Palm Coast really started and what and who really shaped it Last Century.
We are not web designers, nor peddling or hawking any books or whatever for profit, that is not the Palm Coast way. We are just some of the few remaining Palm Coast Pioneer Families – now, the first Fourth Generation in Palm Coast! Consequently we are interested in trying to show what Wonderful and Marvelous things we once had this past Century. Hopefully to give a sense of History; a ‘Sense of Place’ for the new residents and upcoming generations. Regretably , so much can now only be seen in pictures this Century. Here’s the URL link should you be interested. It is only our opinions and experiences about the 100,000+ Acre Largest Planned Community – New Town- in the United States. This started because as we prepare, and are still preparing information to be submitted to the State Historic Preservation Offices and the Florida Master Site Files, we thought why not also put this information into a webpage for others to see. Obviously the task is Herculean, but we keep going forward a little at a time. Who knows what we will achieve – at least it will be on File and Recorded for Researches, Doctoral Candidates, and future Generations to Enjoy – besides it is kinda’ neat that Original Pioneers are trying to Champion Historic Preservation and Conservation here! We hope you enjoy it too – Our Gift to you’ and we ask nothing in return but for you to Enjoy it! Please be patient because it is always under construction. Thank you.
https://palmcoastcorehomes.tripod.com
Full court press
OK I get it, this is a pro Ginn site. That’s great for the one sidded promotion of Ginndome, but reality is Bobby has a history of cut and run. Hilton Head Island circa 1980’s, when cars had bumber stickers, they read " Honk if Bobby owes you money". He’s at the three point line and can’t see the hoop.
If you knew Bobby like I know Bobby
No one likes to hear other opinions, that they disagree with. But open you eyes and look at all the projects that are started and stopped, just because of the overpriced pie in the sky projects he thinks up. It works when prices keep going up, but today, forget it. Hope you don’t get hirt like many have, if you did it was because you listened to all the Ginn PR. I didn’t get hirt, I knew how he operates from years ago. If you knew me like I know Bobby, then you would understand.