Ciboney Group in the red

[evanovitch]

Ciboney Group Limited is back in the red.
The company, which operates Ciboney Hotel, suffered a $415,000 loss for the quarter ended August 6 compared to a $4.2 million profit during the corresponding period last year.

This resulted from operating revenue plunging from $22.6 million during the May to August quarter in 2005 to $719,000 this year.

[ColeS]

Re: Ciboney Group in the red

Didn't Ciboney Close???? Years ago.

[Ochigal]

Re: Ciboney Group in the red

[ QUOTE ]
Didn't Ciboney Close???? Years ago.

[/ QUOTE ]

Actually, Butch Stewart (Sandals Group) now operates Ciboney the hotel...but Ciboney Group is a seperate business entity. Not sure what the financial arrangement is between Ciboney and Sandals...but Ciboney the Hotel is now operating as Sandals Beach Resort...or something like that.

[Ochigal]

Re: Ciboney Group in the red

Evan...whats your source?

[ColeS]

Re: Ciboney Group in the red

[ QUOTE ]
[ QUOTE ]
Didn't Ciboney Close???? Years ago.

[/ QUOTE ]

Actually, Butch Stewart (Sandals Group) now operates Ciboney the hotel...but Ciboney Group is a seperate business entity. Not sure what the financial arrangement is between Ciboney and Sandals...but Ciboney the Hotel is now operating as Sandals Beach Resort...or something like that.

[/ QUOTE ]

Yeah. The old Ciboney is now Sandals Grande Ocho Rios (Sandals Ocho Rios and Beaches Grande Sport joined).

I figured the group is the "company". I am just trying to think what hotel(s) they now own or manage.

[Ochigal]

Re: Ciboney Group in the red

Probably none...but I am betting they still own the property and Sandals is leasing...or some arrangement like that.

[evanovitch]

Re: Ciboney selling its last asset



Resort company Ciboney GrouCiboney Group had its last annual general meeting in March. Herep Limited has wrapped up the US$17.5 million sale of its St. Ann-based hotel to Rios Hotel Managment, a subsidiary of the Gordon 'Butch' Stewart-controlled Sandals Group, but the cash-strapped company is still left with a deficit of $390 million and only one asset left to sell.

Ciboney, having wrapped up the Rios deal this year, is looking to offload landholdings in Westmore-land, and possibly discontinuing its operation going into the 10th year since it was taken over by the financial sector bailout company, Finsac.

But the value of the land is insufficient to cover the company's liabilities, and the company has acknowledged its tenuous position.

"Finsac owns 72 per cent ... they will have to determine where we go from here. We have to decide in the near future," director Geoffrey Messado told Wednesday Business in a phone interview yesterday.

Other Ciboney directors include Patrick Hylton and Robert Stephens.

Messado's comment follows on an acknowledgement in Ciboney's audited financial statements for year ending May 31, 2006, that "the future of the company and the group is uncertain as they have been experiencing recurring losses ... in addition, the directors of the company have determined that the operations of the company could be discontinued in the forseeable future."

The Beaches Grande Sport, as it was branded by Sandals, was Ciboney's last operating asset, leaving the company with no significant revenue source to cut into the $390.8 million of accumulated deficit racked up over the decade. As at August 31, 2006 the company had $20 million in cash and cash equivalents, and resale agreements valued at $42 million.

But it is land located near Stewart's most recent addition - Sandals Whitehouse - which Ciboney's board is expecting will bring in more than a $100 million to cover the $129 million in liabilities it currently has on its books.

"Essentially, we have 16 acres of land in Whitehouse about a mile away from the Sandals Whitehouse," said Messado. "We were offered $100 million for the property but we believe we can get more for it."

The land is currently carried on the balance sheet at a value of $44 million, which was based on a February 2002 appraisal done by C D Alexander Company Realty.

Of the $20 million in cash and cash equivalents, US$254,393 ($16.5 million) is still being held in escrow by National Commercial Bank (NCB) for the group until all remaining commitments related to the sale of the resort are complete.

Sandals fully paid off the remaining $550 million on the vendor mortgage for the amount of US$14.9 million, which was to have been paid back by January 2009, during the three months ending February 28, 2006.

Ciboney then transferred $99.6 million, which the group had received from time-share owners who had bought up about 10 per cent of the units during the short-lived time share programme, to Rios as part of the sale agreement.

At the same time, the final tranche was used to pay off $280 million in long-term loans and reduce the company's payables from $428 million to $130 million.

[Mrs. Gibbs]

Re: Ciboney selling its last asset

Evan, where are you getting the info from? My girlfriend bought her timeshare specifically at Ciboney through RCI. Rumors were Butch was to "buy out" owners.

[lonewolf]

Re: Ciboney Group in the red

I stayed there in Feb.2002. Butch had taken over the property and was pumping money into the resort. It was in desperate need. The resort was in neglect and was in very bad condition but improvements were being made.
I met a few time share owners who were concerned about the Sandals/Beaches take over.
My personal opinion is that if you are a time share owner you are going to screwed out of your money. If anything you will get pennies on the dollar for your investment. Ciboney will file for bankruptcy and it will go through the court system and blah, blah, blah......the end result will be the little guy(time share owners) get's screwed.....good luck time share owners. You are going to need it.

[Mrs. Gibbs]

Re: Ciboney Group in the red

Timeshare owners will not get screwed because they can use their time at other resorts through RCI. She is just waiting to hear because there "is" a contract involved.
Butch has been making it difficult for owners to use the facility anyway. It was only a matter of time.
We were there for the Grand Opening a year ago January. The signature pool is absolutely beautiful but Ciboney was Ciboney. It is gone....but I will always have my great memories of the place.

[lonewolf]

Re: Ciboney Group in the red

[ QUOTE ]
Timeshare owners will not get screwed because they can use their time at other resorts through RCI. She is just waiting to hear because there "is" a contract involved.
Butch has been making it difficult for owners to use the facility anyway. It was only a matter of time.
We were there for the Grand Opening a year ago January. The signature pool is absolutely beautiful but Ciboney was Ciboney. It is gone....but I will always have my great memories of the place.

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You seem to be missing the whole concept of RCI and timeshare exchange ownership. She purchased her timeshare from a timeshare developer and not RCI. She also purchased a membership from RCI. This allows her to bank or store her designated unused week of vaction with RCI. The unused week allows her to exchange her week with other members in the network for a vacation somewhere else. The point is if there is NO CIBONEY SHE HAS NO WEEK TO BANK. IF SHE HAS NO WEEK TO BANK SHE CAN'T BELONG TO THE RCI NETWORK! GET MY POINT? If you don't believe me contact RCI or go to their website and became familiar of how TIME EXCHANGE works. The key words being TIME EXCHANGE.