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Bahamas: Ginn Sur Mer – Credit Suisse Foreclosure Settled
http://www.caribbeanpressreleases.com/articles/6139/1/Bahamas-Ginn-Sur-Mer--Credit-Suisse-Foreclosure-Settled/Page1.html
S Coward

 
By S Coward
Published on 10-Jan-10
 
Palm Coast, FL  – Jan. 10, 2010 -- The New York Supreme Court has approved the settlement of Credit Suisse's foreclosure action against real estate developer Ginn-LA's ( Bobby Ginn and financial partner Lubert Adler) $4.9 billion mixed-use development on West End, Grand Bahama.
NY Judge approves final settlement of $425 million foreclosure on Ginn's
Palm Coast, FL  – Jan. 10, 2010 -- The New York Supreme Court has approved the settlement of Credit Suisse's foreclosure action against real estate developer Ginn-LA's ( Bobby Ginn and financial partner Lubert Adler) $4.9 billion mixed-use development on West End, Grand Bahama. The settlement ends the saga of events begun with Ginn-LA's June 2008 default on a $675 million loan from an aggregation of lenders brokered by Credit Suisse.
Ginn-LA had pledged as collateral their interest in four communities under development:
  • Ginn sur Mer – West End, Grand Bahama
  • Tesoro – Port St. Lucie, FL
  • Quail West – Naples, FL
  • Laurelmor – near Blowing Rock, NC
A fifth development, The Gardens at Hammock Beach, near Palm Coast, FL was originally included in the list of properties encumbered by the credit facility. The Gardens was later carved out of the agreement.
Under a December 2008 restructuring agreement between Credit Suisse and Ginn-LA, Laurelmor was sold to a subsidiary of Linger Longer, the developer of Reynolds Plantation. Lubert Adler apparently maintained a financial position in this transaction.
The restructuring agreement also provided for the chapter 7 (liquidation) bankruptcies of Tesoro and Quail West. Both were sold at a bankruptcy sale; Tesoro for $10.9 million, Quail West for $13.5 million. Court records show that Credit Suisse received (after related expenses) only $14,942,645.74 from the sales.
Ginn sur Mer marks the final piece of the settlement as interest accrued at an unbelievable rate of $91,404 per day. Credit Suisse will control approximately 1,600 acres of the West End, Grand Bahama site, leaving Ginn with about 350 acres. This acreage constitutes the core of the planned development and is reserved for a hotel/casino and condominiums. The development company also retains ownership of Old Bahama Bay resort and marina as well as the airport.
The development company was required to deposit $160 million into an escrow account to assure that the canal system, water  & sewer system, roads, telecommunications, and the Arnold Palmer golf course were built. This work is complete. The project is to be further developed as a joint venture between Credit Suisse and Ginn although Ginn is reportedly seeking outside investors willing to buy out Credit Suisse.
Updated 1-8-10:  One lot owner notified GoToby.com that he had received a registered letter today announcing that the infrastructure at Ginn sur Mer was complete and that he could proceed in applying for a building permit.