SANTO DOMINGO (PRNewswire via COMTEX).- Cap Cana, S.A. announced today that its talks with the lenders of a US$100 million Bridge Loan arranged by Morgan Stanley and Deutsche Bank broke down on Friday, November 14, 2008.
Efforts by Cap Cana's principal shareholders to renegotiate and a request to extend the terms of the Bridge Loan, which matures on November 19, 2008, were not sufficient to satisfy the creditors (which included hedge funds) to which these two firms had syndicated the Loan. Many hedge funds are struggling with redemptions, forced liquidations, and de-leveraging.
The company's principal shareholders offered significant injections of capital to forestall a default under the Bridge Loan, proposing alternatives to the lenders that Cap Cana considered sensible given prevailing market conditions.
Recent strategic initiatives by the company's Board of Directors have been implemented to prepare Cap Cana for a sustained downturn in the Caribbean real estate market as the effects of the global economic crisis begin to take hold in the Dominican Republic and other smaller economies. These initiatives include headcount reduction, outsourcing of certain services, and cessation of non-essential activities.
Dr. Ricardo Hazoury, President of Cap Cana, issued the following statement, "Our commitment to this project and to the Dominican Republic is paramount and without compromise. We intend to pursue a business plan that seeks to maximize the long-term success and viability of the Cap Cana development for the benefit of all our stakeholders.
It is a significant project for the country that supports thousands of jobs and provides significant revenue sources to the Dominican Republic. Our project has been affected by the economic tsunami that has paralyzed the global financial markets. We are disappointed that we could not come to an agreement with the creditors and our priority is to remain committed to the long-term viability and success of the project."
Cap Cana is a 30,000-acre luxury, second-home real estate project under development and is located in Altagracia province, on the easternmost tip of the Dominican Republic.
From: United States
According to Leonel and his cronies the DR is recession proof so how come there is a problem getting capital?
Written by: josean, 18 Nov 2008 11:52 AM
From: United States
Chauncey,
We are waiting for your erudite analysis.
From: United States, Somewhere in the World
Lionel-cito, you have to respond, remember your the one that said that the recession in the USA would not affect or sip into the DR and would not affect any part of the DR, your proving to be that famous liar, like aaa what's his name .......oh ya Bill Clinton, it's ok, we understand, we'll wait a few weeks so you can wise up to your lie, ofcourse I don't know if this could actually happen, being that you and most of your staff really don't know anything except extorsion, drug trafficing, smuggling, that piece of meat thats up their in the cranium is just about half the size of a pea.
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
every half built project in the Caribbean is in the same boat.....every half built project in the world is in the same boat
Written by: josean, 18 Nov 2008 1:15 PM
From: United States
gatitapequena,
Chauncey: The official Lie-onel/PLD apologist.
He reminds me of that Iraqi general who was on CNN stating the Iraqi Army had the Americans on the run as showed live video of US troops as they were landing on at the airport.
Chauncey will get spit on his face by Lie-onel and he would swear its raining!
From: Dominican Republic, la Romana
Readers of this item may care to also read the item relating to the Dominican Republic receiving a golf award for top golf destination whereas the award actually went to Argentina according to the official website ..The press release was issued by the Tourism ministry ...
Also an award will evidently be given to the Punta Cana course as top course in the country which is about as ludicrous as the ministry press release . It probably will not be open for much longer
Written by: juanb, 18 Nov 2008 4:31 PM
From: Dominican Republic
Could it be that these lenders are smart enough to realize that there will be a huge decline in tourists over the next couple of years?
From: United States, Somewhere in the World
It just might be juanb, or maybe they investigated and have realized that they don't want to do business with the dominican republic seeing how they take the money for projects and don't ever come thru with completing the job, most of the buildings are half done and just left their for years untill they get demolished, like the schools that some of our kids are using they hardly have walls much less windows with glass, we have free open doors and when it rains and we have bad weather our kids go home. Maybe they know their just not going to get that money paid back or it could be that maybe they don't want to risk their capital.
From: Dominican Republic, la Romana
juanb i think that comment was made tongue in cheek ..because as you have read here there are some writers here and some government officials who think exactly the opposite ..and of course we have had to put up with this very illogical writing for some weeks ..until the independent figures were released and even then some writers here believe there will be a big turn around and that the DR will buck the world wide trend
Written by: TFISKE, 18 Nov 2008 5:06 PM
From: Canada
Wow!
I have never seen so many people so happy to see this great project in trouble!
This is the same all over and somebody will by it no worries there, Maybe the owners of Casa de Campo,
This place will not close the course unless for the summer!
Its true you people enjoy hearing bad news more then good it is a sad time all over the world but things will get better
I guess you are happy about GM and all the people losing jobs and money that must be LF fault also.
You should all be ashamed!
Written by: TFISKE, 18 Nov 2008 5:07 PM
From: Canada
Wow!
I have never seen so many people so happy to see this great project in trouble!
This is the same all over and somebody will by it no worries there, Maybe the owners of Casa de Campo,
This place will not close the course unless for the summer!
Its true you people enjoy hearing bad news more then good it is a sad time all over the world but things will get better
I guess you are happy about GM and all the people losing jobs and money that must be LF fault also.
You should all be ashamed!
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
thats just josean the metro whiner ...hes not happy until you're not happy
Written by: danny00, 18 Nov 2008 5:51 PM
From: United States
RECESSION PROOF!... give me a BREAK...
lets see what happens when ,1,000 of dominicans in new york and miami start to get laid off.from their jobs...
guess i will not be seening them at the western union office, sending money to the island.hey! they want to tell the world every thing is GREAT in the dominican republic this way they try to keep the real estate values UP... no one is buying this bulls-----.
panama, costa rica, ect, every where in the world its down..... keep on dreaming
Written by: Juango, 18 Nov 2008 6:59 PM
From: Dominican Republic
The CC Project will survive, but maybe in a further downsized state that it was to be only a few short a few months ago. Looks like the principals of the Group will continue to seek financing, as their own capital will never be place on the block, The name of the game is, OPM (Other People's Money), while preserving their own capital. If things continue along the same path as they have in the past few weeks, look at the group to begin using their assets as collateral toward loans, ie. Sinercon, Playa Rincon, etc. Maybe Leonel will divert some money from his glorious METRO for a piece of the action.
From: Dominican Republic, la Romana
The press release says that the owners of Cap Cana could not persuade the lenders of a $100 million to extend the loan and so the lenders will require the money to be repaid or will use the colateral ..It has been pointed out here that these types of developers seldom use their own money and isolate themselves as much as posible from any liability so I assume the colateral is some form of property asset but exactly what is impossible to say ,and what colateral is acceptable in the current climate ,but maybe the entire project will go into mothballs with only minimum upkeep for the existing residents .
Written by: TFISKE, 18 Nov 2008 10:17 PM
From: Canada
Ricardolito,
They have been saying this project would never happen and it did!
I find it hard to believe mothballs we be the way the project goes
Something will happen just you wait and see
From: United States, New York City
This is an example of the many probs of the financial system and 'spreading risk'. The whole point of banks is to lend long and borrow short, and bear the timing risk. Instead these banks turned around and syndicated the loan to entities whose time horizon is at best a couple of years...but as the article said once the hedge funds had a bad quarter they could no longer extend credit as their investors rush to get their cash out. And as for the so-called banks they are so under-capitalized they themselves couldn't extend this loan even though the economics of the project may still be viable. I'm no insider but I'd suggest maybe Dr. Hazoury should have been more careful who he borrowed from and done his banking with institutions interested in more than collecting an underwriting fee.
From: Iraq, 10 billion dollars a month for nothing
"Chauncey will get spit on his face by Lie-onel and he would swear its raining!"
He rather have a Golden shower!!!!!
From: United States
ah, Manhattanite, you learned one, you. in the current economic climate, no sane banker is going to accept real estate assets in the caribbean as collateral. for 100 million dollars?what if the borrower defaults? they do not want to have to have a fire sale to recover the loan. besides, the ability of the principals to repay the loan is predicated on the proceeds of tourism. with the trends and projections, it is just too risky. given the current state of discontent with CEOs of financial houses, i really cannot see anyone putting his signature to a 100 million dollar bridge loan. the bridge loan is exactly what it says; it is there to get them over to the next step; the real financing. this is not Manhattan property; it is not vital. people can take it or leave it. when the chips are down, they will leave it. and the financiers will be left holding one large bag!
From: United States
this is not the same as a developer running out of money while building a group of middle class homes. in such a case, the government would probably underwrite a loan, because the situation is more manageable. this is a luxury project for foreigners to come and cavort. can you imagine the outrage from dominican citizens if the government lent 100 million to a developer to build golf courses, when they do not even have electricity?
From: Dominican Republic, la Romana
well actually dreadlocks you are wrong in suggesting that the luxury project is for foreigners because a very large percentage of land was sold to Dominicans and more than half the houses in Casa de Campo are owned by Dominicans and the new Greg Norman/Metro project near San Pedro has a majority Dominican ownership but the government could not get involved regardless of the ownership
Written by: TFISKE, 19 Nov 2008 11:53 PM
From: Canada
Dreadlocks,
You cannot see much!
Written by: TFISKE, 20 Nov 2008 12:03 AM
From: Canada
Dreadlocks,
Maybe you should look around the states and see the xxxx going down it is no picnic either!
I sure hope you are on a forum bashing all that is happenen in your country!
Chances are you are not because somebody would hand you an xxx whoopin
This cap cana project is as vital to the DR as having over paid union workers building shitty cars burn through money like George W Bush did in Iraq!
I say give them the money what the hell its only 25billion of 700billion seems small if ya say it quick.
I dont agree with it but if the money is not given many will lose there jobs!
If they come back to the well at least congress can say the did the best to help out!
If they some how manage to save these companies everybody will say ya that what I said it was going to work! typical
Written by: TFISKE, 20 Nov 2008 12:07 AM
From: Canada
dreadlocks
This project wil happen it wil take time have issues and maybe change owners but it will happen
I can give you a list of many projects in trouble if you would care!
I few at one time were even in new york just ask the Don!
From: United States, New York City
dread my point is that if they had done their banking with a solid, long term bank when the going was good, they would not now face a situation where their business partners (the hedge funds) probably could not refinance the loan even if they wanted to do it. Unfortunately I'm not sure what banks those would be.
From: United States
i concur whole heartedly with you, manhattanite. but it is too late to change course now, because there is no banker who is going to stick his neck out , in this climate, to shore up this project.
From: United States
TFISKE, put the bong down. nobody is editorialising on the merits of Cap Cana. i am merely saying that the likelihood of a banker lending 100 million dollars to a developer of a project in the caribbean, with caribbean real estate as collateral, is very slim at this time. maybe Donald will cut a personal check, but i do not see that happening either. you do not need to alert me to what is happening in the USA. it is precisely because i am aware that theUSA is in the ditch that i make the conclusions i do.
From: United States, Somewhere in the World
gc, are you a butterfly or bird?
From: United States
gatita, when you think of GC, rememeber these words "i'm jus a gigolo, and every where i go"....you know the rest
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
no no it is.......... I'm just a Cocolo and every where I go
From: United States, Somewhere in the World
jajajajajaj
I was just asking that, because your always somewhere different when you sign in. jajajaja
my, my, you all are crazy
From: United States
the sheriff is trying to catch up with him to make good on his child support arrears.
From: United States, Somewhere in the World
jajajajaja
gc is there something your not telling me!!!!!!
From: United States
something? make that "many things", gatita
Written by: TFISKE, 20 Nov 2008 8:13 PM
From: Canada
Dread,
You just worry about your own backyard and leave the Cap Cana project to somebody much smarter. Maybe a drug dealer will lend some money or buy needing to launder some of his US cash!
Like that as never been done or maybe I sheek will buy it or a prince dont you worry okay!
Just try make your payments!
I suggest you take a hit on the Bong man!
From: United States
TFISKE, i saw the news releases from new york today, which indicate that there is bitterly cold weather there. that being the case, i can only imagine what it must be like in your neck of the tundra. inclement conditions such as those usually create a situation in which the entreaties of potent libations can be very seductive. i therefore will take the liberty to attribute your maniacal rantings to plain old intoxication. that averts the need for any more detailed analysis of your apparent maladjustment. if you disagree with my findings, the sober thing to do is to show me the weakness in my analysis. telling me to mind my own business does not alter the state of affairs at Cap Cana. you might be a cheerleader for the project, but, when you sober up, the problems will still exist. ah, the horrors of that crystal meth.
From: Dominican Republic
What falls down????? Grossly overvalued developments such as Cap Cana. The place is a rub on everyone who cannot afford 1.5 million dollar apartments....because that is really what it is. Great location...well....no. Great beach.....um....no. Restaurants selling $20 plates for $100??? Well...yes. taxi fare to the airport that are...well....50% more than anywhere else....uh-huh.
Regardless of who builds what, they targeted the WRONG market. The high fliers will not flock to a rocky point with a poor beach. This enitire area is based on "working people's" vacations.
Now...for those at the Cap that though otherwise...oh well....some you win...some you loose. So goes the big money game. When times were good, I did not see too much concern for anything outside the gates...correct me if I am wrong. What I do see are a good number of contractors who are still waiting for the money from....."when times were good".
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
hey mike ever been to Casa ? do you see a great beach ? NO "..because that is really what it is. Great location...well....no. Great beach.....um....no." So what is it a great success YES ....GOLF
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
Cap Cana is a reality and a great project mike because you live in a mud hut outside the walls is no need to criticize always ....and in this world economy the cannibals are going to eat you first
From: Dominican Republic, la Romana
PC Mike, I do not think you are correct ...actually I was at Cap Cana yesterday afternoon having a game of golf and the course is in quite good condition but everything else has ground to a halt . Just so all the readers know stage 1 is between a very beautiful sandy beach, the sand so white that you need sunglasses all the time, and the inland escarpment where stage 2 is ,we could call the Trump stage which I believe was almost fully sold. The beach frontage is much greater than at Casa de Camp and at one end is the marina , the apartments and the hotels and what they all call the fishing village and more south is the golf course . Around the golf course there are quite a lot of houses but no where near 30% have been built as most of the land was originally purchased by speculators who wanted to onsell at a profit rather than build .
The marina area is very attractive and many , if not most of the apartments have been built but sure there is always room for more.
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
Stop Stop you are making Mike very unhappy he prefers a ghost town and a return to nature
From: Dominican Republic, la Romana
There is a lot of infrastructure to complete in stage 1 and there has been very little done in stage 2 so that $100 million would not cover it all. I have no idea where all the income from the land sales has gone to but I imagine the infrastructure costs were significently more than been budgeted for and that the developers may have become richer.
The important thing is that Cap Cana is a world class development with investors from the DR and from all around the world putting in money ..I am sure that it , in the fullness of time, it will be completed because, unlike what PCMike says,it is in a great location ,it has a great beach and golf course and has a large number of very affluent people with land.
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
thank you Ricky ....are you related to Ricky Ricardo the busboy at the Copa in Havana who is engaged to loca Lucy the redheaded gringa
From: United States, Somewhere in the World
TSFIKE
You jealous of something, sounds like your a mighty traveler and full of money and full of something else i would rather not say on this forum, but anyways, if you don't agree with what someone says on here, let them know.... just without the bad insults, because its how they say.....""you insult........... based on what you are"".
From: Canada, Toronto ,Cabbagetown,Parliament and Gerrard
ditto
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We are waiting for your erudite analysis.
Chauncey: The official Lie-onel/PLD apologist.
He reminds me of that Iraqi general who was on CNN stating the Iraqi Army had the Americans on the run as showed live video of US troops as they were landing on at the airport.
Chauncey will get spit on his face by Lie-onel and he would swear its raining!
Also an award will evidently be given to the Punta Cana course as top course in the country which is about as ludicrous as the ministry press release . It probably will not be open for much longer
I have never seen so many people so happy to see this great project in trouble!
This is the same all over and somebody will by it no worries there, Maybe the owners of Casa de Campo,
This place will not close the course unless for the summer!
Its true you people enjoy hearing bad news more then good it is a sad time all over the world but things will get better
I guess you are happy about GM and all the people losing jobs and money that must be LF fault also.
You should all be ashamed!
I have never seen so many people so happy to see this great project in trouble!
This is the same all over and somebody will by it no worries there, Maybe the owners of Casa de Campo,
This place will not close the course unless for the summer!
Its true you people enjoy hearing bad news more then good it is a sad time all over the world but things will get better
I guess you are happy about GM and all the people losing jobs and money that must be LF fault also.
You should all be ashamed!
lets see what happens when ,1,000 of dominicans in new york and miami start to get laid off.from their jobs...
guess i will not be seening them at the western union office, sending money to the island.hey! they want to tell the world every thing is GREAT in the dominican republic this way they try to keep the real estate values UP... no one is buying this bulls-----.
panama, costa rica, ect, every where in the world its down..... keep on dreaming
They have been saying this project would never happen and it did!
I find it hard to believe mothballs we be the way the project goes
Something will happen just you wait and see
He rather have a Golden shower!!!!!
You cannot see much!
Maybe you should look around the states and see the xxxx going down it is no picnic either!
I sure hope you are on a forum bashing all that is happenen in your country!
Chances are you are not because somebody would hand you an xxx whoopin
This cap cana project is as vital to the DR as having over paid union workers building shitty cars burn through money like George W Bush did in Iraq!
I say give them the money what the hell its only 25billion of 700billion seems small if ya say it quick.
I dont agree with it but if the money is not given many will lose there jobs!
If they come back to the well at least congress can say the did the best to help out!
If they some how manage to save these companies everybody will say ya that what I said it was going to work! typical
This project wil happen it wil take time have issues and maybe change owners but it will happen
I can give you a list of many projects in trouble if you would care!
I few at one time were even in new york just ask the Don!
I was just asking that, because your always somewhere different when you sign in. jajajaja
my, my, you all are crazy
gc is there something your not telling me!!!!!!
You just worry about your own backyard and leave the Cap Cana project to somebody much smarter. Maybe a drug dealer will lend some money or buy needing to launder some of his US cash!
Like that as never been done or maybe I sheek will buy it or a prince dont you worry okay!
Just try make your payments!
I suggest you take a hit on the Bong man!
Regardless of who builds what, they targeted the WRONG market. The high fliers will not flock to a rocky point with a poor beach. This enitire area is based on "working people's" vacations.
Now...for those at the Cap that though otherwise...oh well....some you win...some you loose. So goes the big money game. When times were good, I did not see too much concern for anything outside the gates...correct me if I am wrong. What I do see are a good number of contractors who are still waiting for the money from....."when times were good".
The marina area is very attractive and many , if not most of the apartments have been built but sure there is always room for more.
The important thing is that Cap Cana is a world class development with investors from the DR and from all around the world putting in money ..I am sure that it , in the fullness of time, it will be completed because, unlike what PCMike says,it is in a great location ,it has a great beach and golf course and has a large number of very affluent people with land.
You jealous of something, sounds like your a mighty traveler and full of money and full of something else i would rather not say on this forum, but anyways, if you don't agree with what someone says on here, let them know.... just without the bad insults, because its how they say.....""you insult........... based on what you are"".