Roy Bailey and Keiran Hutchison of Ernst & Young Ltd., Bermuda have been appointed joint receivers of Bermuda Properties Ltd and certain subsidiaries which own the Tucker’s Point resort.
Roy Bailey and Keiran Hutchison of Ernst & Young Ltd., Bermuda have been appointed joint receivers of Bermuda Properties Ltd and certain subsidiaries which own the Tucker’s Point resort.

Ernst & Young are aiming to dig the Tucker’s Point Club out from underneath a mountain of debt.

At 2pm on Thursday Roy Bailey and Keiran Hutchison of Ernst & Young Ltd., Bermuda were appointed joint receivers of Bermuda Properties Ltd and certain subsidiaries which own the Tucker’s Point resort.

The receivership only affects the companies that own the property and do not affect Rosewood Hotels & Resorts, who will continue to operate the resort and golf club on a business as usual basis. 

Mr Bailey, who is the lead partner for the restructuring, said BPL has a “debt mountain” and owes in the neighbourhood of $150m, which would be more than the original senior loan.

In 2009 the Royal Gazette reported that Castle Harbour Ltd, an operating subsidiary of holding company BPL, took out a total loan of $142.25 million in 2007 from HSBC Bermuda ($111.25m), Argus ($20m) and BF&M (11m).

Mr Bailey said “additional facilities” have been added to the original loan amounts.

Mr Bailey said what’s owed to HSBC is “going to be in the region of $100m to $120m and the balance is going to be owed to Argus and BF&M”.

He wanted to stress that the jobs of the approximately 300 employees at Tucker’s Point were safe.

Mr Bailey said “We’ll engage with the unions and with the employees as early as we possibly can.”

He suspects that meeting will take place sometime Friday morning.

Review

“We need to undertake a review of the various companies to which we’ve been appointed with the operator (Rosewood) that operates the resort. The resort is going to continue as normal and staffing levels are going to be set to the operational needs of the resort.

“The fact that this has gone into receivership is not immediately resulting in any kind of job losses.

“Guests and members — both present and future — should have continued enjoyment of the facilities Tucker’s Point has to offer and are all encouraged to do so.”

“The appointment of receivers is part of a debt restructuring and will not affect the operation of the resort.  The proposed restructuring should put Tucker’s Point in a better position to continue operating as a flagship Bermuda resort in future seasons.”

Mr Bailey said it was not the intention to put Tucker’s Point on the market for sale “in the immediate term”.

“Ultimately the challenge we have before us is largely to deal with the debt mountain that has been built up in this group of companies over a matter of years. We are not in any immediate rush or hurry to deal with any change of the ownership of this resort in terms of selling it to the market.”

Mr Bailey said it is “early days” to form any views on whether or not to proceed on the controversial Special Development Order (SDO) which was approved in 2011.

Both Argus and HSBC declined comment on BPL going into receivership. BF&M was unable to be contacted as of press time last night.