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Latin America Investment News on Viva Tropical

Pending Lawsuit Against Trump Ocean Club Panama

Article Summary:

Investors are threatening a lawsuit against Newland Properties, the owner of Trump Ocean Club Panama, for an alleged breach of bond principal payments in November.

Photo Credit: Capital

Original Article Text From Capital via Google Translate :

Continued Controversy Surrounding The Trump Ocean Club

E l Hotel Trump Ocean Club Panama has become an icon of tourism in Panama, however, the owners continue to face difficulties, especially now that Gary Lundgren, owner of 15% of the bonds were used as financing for the construction of the building, Newland threatens to sue for breach Propierties by not paying in November 2011 agreed the capital.

Lundgren, who was part of the negotiating committee for the restructuring of the bonds representing the bonahabientes decided to leave because he disagreed with the negotiations and said that will suit to foreclose.

Meanwhile, Roger Khafif, owner of Newland Propietires, developer of the Trump Ocean Club Hotel claims to have reached an agreement with the other bonahabientes (representing over 50% of the issue) where they were granted greater participation of these, but their company would retain control of the project and sales of units remaining to sell.

Lundgren was proposing precisely that bonahabientes were in control of sales and prices in the project have not yet succeeded in placing on the market.

Lundgren said his decision to sue is already taken and is independent of the agreement reached Newland with the rest of the bonahabientes and even said he thinks that eventually the rest will end up taking the same decision he did.

Although no definite date has claimed that Panamanians will go to court in a period that goes above 30 days you are discussing the terms with the lawyers.

The investor also said it is one of the main creditors of Newland because not only acquired the bonds, but also maintains private loans with the company (these if they are in order), and acquired several properties.

Lundgren also complained that despite having canceled the properties in the Trump Ocean Club has not received his writings and many homeowners are in the same situation, but the company still has not given satisfactory answers.

Khafif meanwhile confirmed that the investor discontent known and warned that his departure was negotiating committee for some time. He added that although he prefers not to be sued and that things are resolved through dialogue, said that Panama is a free and Lundgren is entitled to do so.

He explained that the delay in the issuance of the scriptures is because procedures with relevant parties and in the specific case of Lundgren also due to an issue of differences in maintenance costs.

He said it will continue negotiating with the committee and holders representing a majority.

Newland Popierties issued on November 7, 2007 in the amount of $ 220 million, but by November 15, 2011 should make a payment of $ 31.4 million and did not realize it, and is currently negotiating a restructuring with bonahabientes, but the next payment would be $ 41 million in May 2012.

Khafif said the negotiation was completed with the holders, and although he can not disclose the agreement because the final document is not signed yet, said he extended the deadline and also reached agreement on a new injection of capital and no longer needed no sales pressure. The agreement will be published according to the developer in at least 30 days.

According Khafif everyone involved, including the Trump organization, agreed and are making efforts to ensure project success. But he acknowledged that if prices are down a bit, for example, economic units were priced at $ 4,500 top of the meter box and now are $ 3,500.

Among Khafif and Lundgren is no difference on what the actual percentage of what is to sell the building. Khafif speaks of a 40% to 45%, while Lundgren is estimated that approximately 60%.

Lundgren said the difference may be because Khafif refers to 60% of what it was originally sold 85% of the project and not the total. He reminded that at least 80 units had been booked by the same developer but were eventually incorporated into the inventory.

However, Khafif said the correct figure is 55% or more sold and closed. This includes approximately 35% and 10% failure that was not sold.

The business is still going
According to Khafif the Hotel and the business are successfully marching to the point that the hotel recorded a near 100% occupancy in two weeks in February and now were working at 78% occupancy. Occupancy levels significantly exceeding the average hotel occupancy rates registered in the country during the years 2010 and 2011 according to the Comptroller General of the Republic, were 66.8% and 65.2% respectively.

Said his business plans and will continue to firm investing $ 15 million in the Beach Club will now be built in Isla Viveros and will have a hotel.

He noted that last week set sail from a dock Hotel 100 Canadian tourists to the island of Contadora to spend the day and in the plans shall fall tour of the Bay of Panama and water taxis.

He also said that maintains bids from three U.S. companies to install the Casino, but even that does not close a deal with bondholders not sign a contract to develop this recreational activity.

Link to Original Article:

From Capital

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