Ginn-LA Credit Suisse Rumors Abound
A deal to settle Ginn’s debt with Credit Suisse is said to be done. Other Ginn rumors abound.
Palm Coast, Florida – November 12, 2008 – After months of negotiations, two of Bobby Ginn’s affiliated companies are rumored to be close to settling a default on a $675 million credit facility with Credit Suisse Bank. The facility encumbers specific properties within four of Ginn’s developments:
-
Ginn sur Mer in The Bahamas
-
Tesoro, in Port St. Lucie, FL
-
Quail West, near Naples, FL
-
Laurelmor, near Boone, NC
The loan is "non-recourse," leaving the lender with limited options:
-
Renegotiate the term and/or interest
-
Foreclose on the encumbered property
-
Negotiate a final settlement
Remember that you are reading this on the "Rumor" page, but here is one scenario I’ve heard from a few people close to the Ginn organization. Credit Suisse offered to remove the liens on Laurelmor, Quail West, and Tesoro for 10¢ on the dollar. Ginn sur Mer would be released for 40¢ on the dollar. Ginn, or more accurately Ginn-LA, accepted the Laurelmor and Ginn sur Mer offers but declined Tesoro and Quail West, presumably turning over these properties to Credit Suisse. I understand that the properties affected are home sites only and do not include the amenities. At a recent "absolute" auction, a Tesoro Preserve lot originally purchased for about $200 thousand was sold for $22 thousand. When asked for verification of the Credit Suisse settlement, a Ginn spokesperson had no comment.
Among the 50 or so other Ginn rumors floating around is one that I think may have some credibility. I heard that Luber-Adler (the LA in Ginn-LA) has quietly purchased lots in Bella Collina owned by Bobby Ginn. This is plausible because recent events at The BriarRose in Georgia and Cobblestone Park, in SC indicate that Lubert-Adler has taken effective control of the Ginn organization and is taking steps to reduce Ginn’s involvement and to de-emphasize the Ginn name. Another rumor that the Ginn name will soon be removed from the "Ginn Reunion Resort" property adds credibility.
I’ve heard no credible evidence that any deals have been struck to sell either Hammock Beach Resort or Reunion Resort to hotel operators.
Rumor: (noun) A current story or statement without confirmation or certainty as to facts
Briar Toad
Toby,
You seem to be the only person on earth that supplies information on the Briar Toad. Do you or can you provide any more information. I know everything about the LA group and the new developer but time stands still without any updates. It would be a GOD SEND if Reynolds were to become involved and make this a property worth having. With close proximity and access to the lake via dry dock storage, it would be perfect. Is this any more than rumor?
Chapter 7
Toby,
I just received in the mail a Chapter 7 notice for Tesoro. I guess Credit Suisse
is going to own the propoerty now.
As a Tesoro Preserve property owner, I hope someone does take this propoerty over and turn it around. It’s our only hope.