Bush supports Treasure Island deal

Hon McKeeva Bush, Leader of Government Business,
shakes hands with Jeff Cohen, the Receiver appointed
by Scotia Bank to deal with the Treasure Island sale,
after Mr Bush met with staff to reassure them of the
future

Jeff Coyne outside Treasure Island Resort

Wednesday  April 6, 2005

Worried about the future and the pending sale of Treasure Island to local businessman Harry Lalli, employees of the resort called the Leader of Business Government, Hon McKeeva Bush to meet with them over the security of their jobs. 

“With the deal about to close between the bank and the liquidators under new ownership, some staff were worried about their jobs due to staff being laid off, “ said Mr Bush.

“The staff will get a severance pay, but the property will be getting a complete makeover and will still need staff, many of them in existence now such as engineers, landscapers and such. There will be a few layoffs but no Caymanians.”

On Monday 4 April, Mr Bush talked with staff about their concerns over unpaid pension contributions in the last few years and problems over medical cover. He assured employees that insurance and back pensions were being taken care of. 

He further stated that he supported the deal for long term apartments and hotel rooms and that it would lead to an overall improved situation. 

The Director of Human Resources for Treasure Island, Eric Bush said that former Treasure Island employees and Caymanians will be given first priority for new job openings.

“We are not going to close the resort so many jobs such as maintenance, general housekeeping and laundering will experience no interruption from employment,” said Mr E Bush. 

He acknowledged that there were plans to renovate the restaurants and there would be a gap in employment for food and beverage employees. 
A number of employees at the meeting said they appreciated Mr Bush meeting with them, but they are still worried for their jobs, because the new deal will be for long term rentals, which needs less staff than a hotel. Many said they are getting their resumes ready and looking for other jobs because they really don’t know for sure what will happen when the deal closes in two to four week’s time.

Before Hurricane Ivan there were 93 employees, but it is now down to 74, primarily due to resignations. 

The Treasure Island Resort had suffered a number of financial failures in the last few years. During the resort’s latest financial woes, Jeff Coyne, was appointed the receiver by Scotia Bank in September 2003 and said he has been working to turn the business around to make it more valuable for a seller since he took over. 

Although the exact amount of sale was not disclosed, Mr Coyne said the sale amount is less than the total owed to creditors estimated at $17 million. He further stated the proceeds of the sale would go to the secured creditors, the primary one being Scotia Bank that holds the mortgage. 

The new owners of Treasure Island are brothers Harry Lalli and Amrit Gill. Mr Lalli is the owner of Jolly Rogers, Cuba Vacations, Matrix and the Next Level. Mr Gill is a developer in St Louis, who specializes in refurbishing old properties. They plan to call the new company FrontDoor Cayman, a variation on the development in St Louis.

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