Ryan loses control ofRitz
(CNS): Following the recent revelations regarding legal action against the developer of the Ritz-Carlton, Grand Cayman and his various companies, RC Cayman Holdings LLC, the secured lender to the companies involved in the development of the resort announced the appointment of receivers Monday. Kris Beighton and Keith Blake of KPMG, Grand Cayman have been made joint receivers of Cesar Hotelco (Cayman) Ltd, CondoCo Grand Cayman Resort Ltd, Cesar Properties Ltd and CondoCo Properties Ltd, which were involved in the development of The Ritz-Carlton, Grand Cayman and are all owned by Micheal Ryan (left), who has now lost control of the property. In a statement regarding the appointment, KPMG said it was a legal step taken by RC Cayman under its security arrangements.
“The appointment of the Joint Receivers will have no noticeable impact upon the day-to-day operations of the resort, which have been and will continue to be managed and operated by Ritz-Carlton,” a spokesperson for the joint receivers said, adding that they intend to work closely with Ritz-Carlton to ensure that guests, visitors, owners and tenants continue to enjoy the five star experience and service for which the resort is known.
A spokesperson stated that it was very early days for the receivers but the management team from the Ritz Carlton, which is part of the Marriot Group, would continue to operate the resort as normal.
This comes on the heels of legal action filed in the Grand Court last month by RC Cayman Holdings, the current owner of a $250 million loan used to build The Ritz-Carlton. The company, which acquired the loan in May last year, filed a civil suit seeking an injunction against a number of defendants, including Ryan, to prevent them from "interfering with" its attempts to take control of the development.
The loan used to build the Seven Mile Beach property was originally extended by The Royal Bank of Scotland in 2001. Six years later RBS sold the loan, which at the time had outstanding principal and interest of $161 million, for an undisclosed amount to New York-based Credit Suisse subsidiary Column Financial, Inc., which immediately increased the size of the loan to $250 million and solid it to RC Cayman, but it is not clear how much of that original amount remains outstanding.
Following the writ, Michael Ryan had said in a statement to OffshoreAlert that there was an issue as to whether the lender was entitled to take control. "It is hoped and expected that an agreement between the parties to resolve this matter will be concluded in the near future," Ryan told the Miami based watchdog.
The developer of the Ritz Carlton also owes the Cayman Islands government over $6 million in deferred payments on customs duties on material used to build the resort. With the hotel now in the hands of the privately appointed receivers, it is not clear where the Cayman government stands in relation to its ability to recover that outstanding debt to the public purse.
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Wonder if the Government have registered a charge over the bricks and mortar, if not doubt they'll recover a penny as secured creditor would need to be paid first and I doubt the Ritz is worth anywhere near $250m! Is there a claim against the Government here for not acting in the publics best interests and at least attempting to secure the $6m???
Y-ou, people that keep talking about W/B you need to stop and think!
the majority of UDP members in government were not voted in by W-Bayers,
YES, he came to your district and the majority of you all supported him by voting for his canditates.
YOU GAVE HIM THE POWER AND now you blaming others,
they stood on the platform with him, you knew the man, you voted for his ticket.
Blame , blaming others sounds familiar, it''s the UDP way
Bet you do it again next year and then start all over again cursing W-Bayers
Bet the majority of you all will not prove me wrong!
My my my, our country is smelling stinker and nothing happens to stop it.
A piece of $%^+, will always be $%^+,
and look whothey always gravitate to,
WONDER WHY?
When are we going to clean up this mess?.
Revoke Ryan's status and put a lean on his holdings.
Everything Mac does come down to failure. We have to rid ourselfs of this nightmare on UDP street.
Dear Politicians,
What we need in Cayman is a CIA (central intelligence agency) as opposed to a CYA which as you know stands for Cover Your A$$.
Just a thought.
GOOD
Keke sounds like a smart leader to me, he rose the price of gas and how screws the country once again, I hope you people who voted for keke in west bay keep track of our beloved leader and his progress lol?
IS THERE a lein by Govt on the property yet — or will it go down like Treasure Island Resort did?
Interesting that those condos got sold just in time and to the perfect buyer – Amazing coincidence….There cannot possibly be any insider information used – I wonder if the receivers will look where they should …….. Does anybody think that the legal department has been instructed to try to secure the people's losses in this … or is it possible that they might have been instructed not to for fear of what might turn up …..
The Receivers should normally look at any transactions going back at least three years, in particular large money (over 50,000 dollar) transactions. I can just imagine the phone calls the KPMG partners have been getting from "agents" of the "affected"
anywhere else in the civilised world this would be a resigning matter…… but here it ijust another day..another headline…to be replaced by the next embaressment….
great work governor taylor!
10 years ago an article entitled "Funny Business: Putting on the Ritz" on UPI. Google it as it is worth a read – No wonder our politiicans feltso comfortable doing business with him.
I hope that Mr. Ryan enjoyed his ride. I also hope that he has put away (out of reach of his creditors) some money so he can enjoy life somewhere other than Cayman. Kind of like the old saying; “He came, he saw, he took advantage, he left.”
I am sure there are others, some that from here, that have established accounts “Off Island” in case their bubble should break also and their behind the scene actions are discovered.
I hope he takes his friend Mac with him, & I do not really care where in the world they go, just go!
Dear ” Having a creditor take over “. Whilst it may be the Ritz Carlton that still has to pay it’s CUC bills – it is not the Ritz that owes the Cayman Islands $6 million. It is one or more of the companies owned by Ryan.
All of the old TV shows are coming back: Hawaii Five-O, 6-Million Dollar Man…
As contingent creditors of these companies is CIG taking advice about putting them into liquidation?
So a developer gets richer, a shell company is allowed to stop payments due to the government treasury, a politician coincidently gets a few more million, and the environment gets screwed. Sounds like progress to me.
Arden & Ezzad sue them all to recover our $6 million.
So he still owes $6 Million in duty. So basically he avoided paying taxes in a tax haven. LIKE A BOSS!
Wha ya say – "Ryan Rosay" awa'?!
LMAO!!
The way I see it, McKeeva allowed the $6mln deferral, so as the personal backstop to that creditline, he should secure it with his own funds. They are owed to the people of the Cayman Islands (and probably much much more).
That's that good ol' concessions galore, duty free, internationally renown franchise, inward foreign investment for 'ya!
Clearly we need to stop 'fighting progress' and grab hold to every greasy, snake-oil salesman that flashes us a few bills.
Tell me now that the Ritz Carlton was agreat inward investment project for the long-term financial benefit of Cayman! What an embarrasmment for the country. It just shows, even big brand names can't make it work in the Cayman Islands. I'll bet the CIG have no formal agreement in place to secure the the money owed by Ryan in the circumstance. Add this $6.0M to the $0.5M (Cohen), $2.5M (GLF) and $4.0M (Churches) squandered by this totally incompetent Minster of Finance.
It is important to note here that Mr Ryan owns the building, the infrastructure. He does not operate the hotel. The hotel building is operated and managed by The ritz-Carlton. A very important distinction … The man’s debts are NOT the hotel’s debts.
It would be interesting to say what the lease says about Ryans obligations on this land, hopefully gov put some provisions in so that if his hotel closes, he could loose his lease, now that would be an interesting situation!
Is there no fiscal responsibility mandated to our government, especially the Leader/Premier?
Certainly the 'manager' of any corporation/company would be FIRED for such unacceptable, irresponsible mis-management!
In my opinion, any obligations Ryan and/or KeKe may have had were undoubetedly NOT for the benefit the Cayman Islands and OUR people!
Does that mean that a certain politician needs to give back the condos or did word come down to dispose of them quick?
Step 1. Local real estate company purchases land from Holiday Inn (co-owned by govt. official).
Step 2. Sell land to Ritz
Step 3. Give major concessions to developer of Ritz
Step 4. Get nice XXXX (or two).
Step 5. PPM gets into power. Payments on said concessions commence.
Step 6. UDP back in power. Payments stop.
Step 7. XXXX sold
Step 8. Ritz into administration, everyone lines up except Govt to collect outstanding bils.
Hmmmm?
Hey Frankie, its time for another movie, Haven 2.
Oh oh – guess they need another Caymanian partner now. Quick Mac, create one, we wouldn’t want any local people owning part of this (except for you I mean, of course).
Maybe Big Mac may know someone who owns an apartment at the Ritz, which could be sold and the proceeds donated to the Gov't to partly pay the $6m owed to Gov't. How about that for an idea?
No worries he will still have lunch money tommorow 🙂
Yeah I think I saw him under the big tree in front of the LA waiting for Mac to come outside. Beg yu a fava…
By the way…Thans again for our mangroves…XXXXXX!
Make that be 6$ or $600 we the people might owe the Government and see how quick we get a summons!
What kind of message does this send to the investment world again.XXXXX
Look forward to hearing that Government has joined the lawsiut. (As a creditor; to get their money owing.)
Alden's 'Bailout' comments before the actual receivership of Ritz took place, indicates that he is not that differenet from Mac. UDP and PPM both needs to go ….
It's true. Need someone new with a common sense platform to find their cojones and set up their own new party. It's pretty simple. All the forms are online.
Yeah, that's all well and good, if you want both parties to be ousted…but then who will run the country? Oh wait…all the CNS "comment posters" are quite certain they are up to taking on that task! They will just hold the legislative assembly as a forum on CNS…good thinking!!!
CNS commentators would sure do a heck better than the morons we currently have trying to run things.
18:52 You are talking sense, they all want change, a bunch of power hungry people. Just fighting for another chance to kill the people.
One thing for sure I would not vote for PPM to go near the Assembly again. Infact who they have left in PPM anyway? The two Bodden Towners has resigned, and the other one, dont know how to find LA any more, Kirk is having a Jolly good time with the Barn in North Side,Good food, good entertainment too. If I was him I would not run again. He is not interested in politics anymore, cant you people see that, and besides that he is a better person with the Barn, tuly a fact.
East End PPM member, McKeeva loves him to death. Ezzard I dont know what to say, because Alden McLaughlin is not going to allow him to be Premier.
Cayman Brac, Kirkconnell, he is learning the hard way, stick to Ms Julie and you will be voted in again. PPM is done. We need fresh MLA's but not all new, Because if we do that, we will surely be up shit creek with no paddle.
I am sure you didn't vote for PPM the first time seeing that you don't even know the name of its former leader.
So….. to summarize, you only want the UDP MLA's to stay in – you could have said that in a few words.
"Cayman Brac, Kirkconnell, he is learning the hard way, stick to Ms Julie and you will be voted in again".
You do realise that Moses was the first elected member in Cayman Brac, right? In no way is he dependent on Julie.
The forms are online. Why don't you apply?
We should have taken his plane, boat and house when we had the chance. Mckeeva. Alden and Chuckie never got the balls to stand up to him. Now all is lost..All we can hope for now is that this company has a moral conscience (likely they don't) and do what is right by the Cayman Islands people as a good corporate citizen.
.
And of course if RBS had done proper due diligence in the first place you wouldn't be in the situation.
You have to go back to when all this started and the developer had just been embrolied in another resort (Cacique Del Mar) in Costa Rica.
The story is filed on UPI but CNS' spam filter won't let me post the link.
Dart must realize by now that the Ritz is a better deal than the old Holiday Inn. Leave our road and Public Beach and go further South Mr. Dart. In doing that you can have your condos, your 5 Star Hotel, your beach and its even nearer to your Camana Bay. You got Fosters right next door too and you can have the Dragon Bay behind the Ritz, a perfect deal. just leave our piece of West Bay road alone and we can live peacefully after.
Someone with connections needs to publish just who is the beneficial owner of RC Cayman Ltd. I'm doubt anyone will be surprised.
16:36 No thought behind what you just posted. I thought we didn't want this one man buying all of Cayman now you're suggesting he buy even more??? Wake up before posting next time!!!
This isn't just a receivership; this is a Mike Ryan receivership.
This is a great time for Dart to step in a get a deal on a 5-star property without having to build a new one. No need to move the road either.
Or maybe they can then just find a way for the road to be closed from Public Beach to the RC. Careful what you wish for!
I'm not sure that the Westin would agree to that.
That won't happen. I think you are missing that Governor's House and the Westin are along the way.
Honestly now, we all knew deep down that CIG would not get this money back, we were just holding out hope in the SLIM chance that it might.
My question is, will there be a MDR (Million Dollar Run) this year with Ryan and his racing team?
He can change his name to ” The Six Million Dollar Man ”
Why don't Gov't make a deal to move the dump to the golf course in exchange for the 6 Million he owes us
Last I heard our illustrious leader was in Honduras promising them jobs (which are apparently in abundance over here). He is also telling them that he wants to start importing produce directly into Cayman and cutting out the middlemen who first ship the produce to the USA then distribute it worldwide, which is a good idea, however I doubt that we can demonstrate sufficient volume to command a sizeable price reduction if we are only supplying the Cayman Islands. the economies of scale are not there and I wonder if Mr. Bush has done the proper analysis on this prior to signing any deals? In order for a small shipment of produce to prove profitable to the Hondurans, they would have to jack up the price to cover transportation costs etc. I imagine they could make this work if they wanted to but my initial feeling is that the volume is not there to justify a huge price decrease and that this will be just another pipe dream. Maybe some lucky entrepreneur has gotten a heads up and is already setting up a produce transshipment business.
Alleluia! Amen! How the self proclaimed mighty have fallen!
So who sponsors Michael's tennis tournaments now?
Just illustrates that you can kick the can down the road and talk to your politician buddies but eventially you have to pay your bills…
Well Bush talk us through this one, preferably with a definitive explanation of how you, and YOUR government, intend to recover the $6 MILLION OWED BY RYAN TO THE CAYMAN ISLANDS.
Apparently one poster doesn't want govt. to have that money even tho it desparately needs it.
Does this mean he has to give his status back????
Dont tell them a thing Mr Bush, they are too fast and want to get into business which is not theirs.
Having a creditor take over the operation does not mean that those owed monies will not be paid. Neither does it typically impact operations of the facility. All this is is that the "bank" took over your house not that you now dont owe CUC. You still do and so does the Ritz.
Dont get too excited folks. The property is worth way more than the debt.
The creditor is not taking over the operation. The creditor has appointed a receiver to take possession of the property and either sell it to recover his money, or transfer it to them in settlement. The secured lender doesnt takeover the debts. To use your analogy the bank has taken your house – you may still owe CUC but the bank doesnt and you got jack left to pay CUC with.
And as for the property being worth more than the debts, do remember that in addition to the $250m, which will have to be 100% paid before a penny becomes available for CIG or any othercreditor, there is a massive unsecured claim by his other backer, who Offshore Alert reckon is due more than $200m on top of the secured debt. And on top of that will be any other unpaid bills and liabilities. You think everyone is getting paid in this one then you have been smoking your socks.
Does this mean we can all play the golf course now?
Are they repossessing the 2 Royal Suites
It's finally come around Ryan. Good night!
Sorry Cayman but Govt has no choice but to increase the fuel tax on us all, by another .25 cents to cover his buddy's debt to Govt…
Another fiasco for the cayman islands tourism industry and th country stability.
This clearly illustrates why Gov't needs to have a GOLDEN SHARE in all critical companies that affect the Cayman Islands.
It is time we are masters of our own destiny.
Do you think putting companies in the hands (incompetent hands!) of Government is making you a master of your own destiny? Seriously?
Oh how the might have fallen. I'm not rejoicing though because it all reflects negatively on how business is done in these Islands. I do wonder though where the CIG stands on that list of (unsecured?) creditors. Also, the receivers are going to make a killing on fees!!!
Can we get our $6million now? Ryan had his chance. No bailouts Mac & Alden. NONE.
No worries DART will step in and take control!!
I wonder who RC Cayman really is !!!???
14:40, I will say why not? I hope uncle Dart do just that, step in and take it over.
LOL! There goes the money he owes to CIGOVT!!!!