Khaalis Rolle, former Bahamas Chamber of Commerce president yesterday said the details surrounding Kerzner International’s $175 million debt-for-equity swap did not ‘add up’. Rolle questions how the new owners can see a return on their Paradise Island assets unless there are changes in the operational/business model.
Mr Rolle, who emphasized that he was not speaking as the PLP’s Pinewood candidate, questioned how Atlantis and the One & Only Ocean Club could generate the level of profitability likely expected by Brookfield Asset Management, especially since another layer of costs was being added through Kerzner International’s management fee.
Rolle pointed out that most businesses change after new owners take over, especially under circumstances such as those that forced Sir Sol Kerzner to transfer ownership of Atlantis and the One & Only Ocean Club in an effort to address their $2.6 billion debt mountain.
Essentially, the former Chamber president is arguing that the ‘business as usual’ impression being conveyed by Kerzner International and Brookfield does not square with the current business reality, where the resorts need to go and Brookfield’s expectations.
