Struggling to keep hold of Atlantis, executives at Kerzner International proposed a two-year extension in May 2011 that would have imposed harsher terms, according to the court document filed by senior lenders from Kerzner International’s $2.5 billion mortgage debt.
Kerzner was required to put up additional equity capital but senior lenders claim Canadian conglomerate Brookfield did not consent to the proposal because it would not have led to their takeover of Atlantis – a questionable arrangement.
“Under the proposed Brookfield transaction, the Brookfield defendants would receive 100 percent of the equity in the borrower, along with Kerzner International’s interests in two other hotels, entitling them to reap all of any future appreciation in value,” the document states.
Brookfield is being sued by four senior lenders for “brazen self-dealing” resulting in its acquisition of Kerzner International’s assets in The Bahamas and Mexico on Nov 30 – which, it is claimed, was done without approval and in violation to the loan agreement.
