fp Turks and Caicos

According to the statement, Dr. Cem Kinay, together with his partner Oguz Serim, the sole partners and directors of Turks Ltd, the owner of Dellis Cay and Dellis Construction Ltd, the contractor for Dellis Cay are trying to work out a restructuring plan with their funder Trinidad and Tobago Unit Trust Corporation (“TTUTC”).

“Our business is on the brink of collapse because confidence in it was destroyed by allegations made by the Turks and Caicos Islands Commission of Inquiry during its hearings earlier this year and then repeated in its leaked report”, stated Dr Kinay. “Despite the world economical crisis, we had continued to operate but we could not survive the publication of these allegations, despite the fact that a court found that they were unlawfully made.”

Dellis Cay was a hit from day one, almost selling out of its first phase of released properties on the luxury private islands. Approaching the one year mark of construction, turmoil in the government and the worldwide reputation of the country caused sales to come to a halt, when potential investors became uneasy with investing in the TCI. Unwilling in the tumultuous economic times to invest in a country with an uncertain government, many potential sales were put on hold.

Dr. Kinay strongly accuses the adverse effects of the Turks and Caicos Islands Commission of Inquiry’s Final Report to be responsible for the struggles the project has faced over the past few months. The results of the report combined with negative press and anonymous emails and letters from what Dr. Kinay amounts to “a group of political activists in Turks and Caicos Islands,” sent to the project’s partners and funders as being paramount to the destruction of the company’s business and its reputation.

Dr. Kinay stated, “As a result of the negative environment, our sales slowed down considerably and impacted the performance of our receivables, and new sales.”

Kinay says the company owed a US$7.1 million principal and interest repayment to its principal funder, TTUTC on 22nd of August 2009 of which they were only capable of paying US$4.1 mil. He says they have been unable to make the remaining US$2.9 mil payment since the due date, 6 weeks ago and are therefore asking TTUTC to give them more time to secure further financing.

“We have to date paid all our principal interest to TTUTC on a timely basis, however, they have advised us they will not support a partial release of our funds that will help us while we seek to find additional funding. Furthermore, we asked them to consider an extension of time of 60 days whilst we make efforts to regularize our financial position and provide a credible restructuring plan with new equity partners, Mandarin Oriental Hotel Group, and the existing purchasers. These requests are currently being considered. ”

Dr. Kinay stated that he hopes for an amicable solution with TTUTC, and has an open mind about any solution that they could bring to the current deadlock. “We have invested all of our money in Turks and Caicos Islands, and we will continue to protect our investments, our reputation and the interests of our purchasers who have entrusted us with their investment, whatever the outcome.” Dellis Cay was responsible for employment of a considerable number of residents of the Turks and Caicos Islands, directly and indirectly, through the administration, sales, marketing and construction of the project. Kinay says to date, “construction has stopped, all foreign workers have been sent home and local labor is asked to wait until further notice before they start again working at the site.”

The future of the project, the employees and the owners of units already purchased on the island currently hangs in the balance. Dellis Cay has been financed with a mixture of developer’s equity, proceeds from sales of residential units and a loan from Trinidad and Tobago Unit Trust Corporation. For the project to move forward, Turks Ltd. will have to secure additional financing in order to acquire the operating capital necessary to continue to build, market and sell the remaining available units. Furthermore, the fp understands that a large number of employees and management as well as suppliers, consultants and service providers based in Turks and Caicos and abroad yet have to be paid for their services during the last months.

Dellis Cay has been a positive light in an otherwise dim economy over the past year in the Turks and Caicos. The news of the restructuring, while negative for the moment, offers hope that a solution can be found to bring the project back to life as quickly as possible and result in the jewel to the country it promised at its ground breaking, just over one year ago.