Cap Cana problems

[ddalet]

The project is broke, and will remain so for a while. Unfortunately it is a cash flow problem, which is usually very serious in the face of tightening credit... and will only make credit even scarcer.

I have admiration for the vision/ambition of the project, but not the financial strategy and leadership. I don't know what b-school, if any, those clowns went to but they ought to ask for their money back.

However, it is unlikely the world is ending... times like these come and go. I suggest you wait for prices to come down to half their value to a third if you were thinking of buying. IMO, it is only at those prices that you are getting fair value for your dollar.

Eventually, this project will be finished... so if you are in it, and don't need the money (read: you weren't one of the foolish speculators) for 5-10 years... don't sell. The prices ought to have retraced to what they charged you by then.

 

[MikeFisher]

cash flow and such,
hey,
that's my world.
i am an top expert on that, like any other married man on the planet.
my cash always flows out of my hands faster than i could grab it tied,
when the Mrs needs to go to the Spa or shopping aso, ha ha.
Cap Cana been a high risk investment for guys with big bucks,
the bigger guys kept the money for themselves instead of developing something for the smaller wannabe big guys,
so the smaller big guys have to wait a decade before our former most beautiful beach on the island get's any value back.
what i think about the small big guys risked cash??
i don't care, they wanted to live with Trump, but they never met him to ask where he really will live.
what i think about the overall, specially the BEACH???
don't worry Rob,
i don't write it here on the bord,
i stay family friendly and enjoy an other Baileys.
Mike

 

[AK74]

cash flow and such,
hey,
that's my world.
i am an top expert on that, like any other married man on the planet.
my cash always flows out of my hands faster than i could grab it tied,
when the Mrs needs to go to the Spa or shopping aso, ha ha.
Cap Cana been a high risk investment for guys with big bucks,
the bigger guys kept the money for themselves instead of developing something for the smaller wannabe big guys,
so the smaller big guys have to wait a decade before our former most beautiful beach on the island get's any value back.
what i think about the small big guys risked cash??
i don't care, they wanted to live with Trump, but they never met him to ask where he really will live.
what i think about the overall, specially the BEACH???
don't worry Rob,
i don't write it here on the bord,
i stay family friendly and enjoy an other Baileys.
Mike

By the same tocken I do not care about those who lost their money on stock market. They adults were supposed to know that stocks are pure gamble. Like Atlantic City. But still wanted to invest in stocks. To watch money growing and to become rich fast without moving a finger. It does not work. All gamblers are taken through the hole sooner or later.

Nobody sympathizes with gamblers. Same to stock players. Same to those who having annual income of only 70G decided to buy half-mil mansions. Now they are evicted, foreclosured. And they complain.
What did they think about?

All the best scams are based on victims` worst and ugliest weakness - GREED.
They got what the deserved.

Even if with time they will recuperate financially, they will pay for their greed. Leaving this world decades earlier than they could. This will be price for the stress, horror, fear and shock that they are experiencing now seenig their gambling money evaporating into high-fly crooks` hands and pockets, into their golden parachutes and mind bogging bonuses.

 

[Mr. Lu]

Can someone decode what this means and put it into plain language?



Mr. Lu

 

[MikeFisher]

ha ha,
yeap MrLu, such needs to be read more than once to get 'nearly' understood.
i am not a financing pro/expert or such, but at least i know exactly to what limit i can take money from my private credit card before the bank has to remind me with a 60 days or such time limit to refill or get the credit card thrown in the trashcan.
a short while ago i read in an article about the huge sum of 3000millions of US$$$ value of Cap Cana or such.
now this article shows that they did not have the simple 12 millions to cumply with their promises. taken out from an account where that sum needs to be replaced within 60 days, otherwise...???

if you and me have a simple credit account good for $50.000.- of credit volume, we use that in full and have to pay the bank a yearly interest of let's say 10% for the use of that credit volume, it come's the day that interest % has to be paid, so what we do??
we use the same credit card, take in addition to the prior balanced 50K's an other 5K's and pay the bank the interest.
what will our bank doing in such case with us bad behaving boys?
they will contact us and let us know that we now have a short time limit (and for sure less than 60 days, lol) to refill the overdone 5K's AND to pay the expired 10% interest, otherwise...???
actually that CC theme isn't looking very promising.
Mike

 

[STEVE G.]

Trump Tower at Cap Cana : Renders of what is or was going to be built

 

[STEVE G.]

 

[catcherintherye]

Mr. Lu,
Perhaps Mike already answered your question, but if not, apparently they used their reserve fund to make the interest payment so they wouldn't default. If they don't replenish the reserve fund within a certain period of time they could still default.

It sounds to me much like a company on the edge, trying all kinds of angles and shifting of funds to stay afloat. It is not particularly reassuring.

 

[MikeFisher]

yes David(catch),
that's in much better/shorter words what i wanted to answer myself.
Steve,
nice shots,
but that tower and the shown road system are not existing here at Cap Cana Punta Cana, so i assume you just tried to put a picture on what some investor's gathering real estate mutants like Cap Cana S.A. and Trump aso brought up as 'power point presentations' to show what may be possible to come up if someone flips the needed money over to do so.
latest deadline is the 60 days course to fill up that minimum on the backup account.
somebody has more actual news on the project?
Mike

 

[NALs]

yes David(catch),
that's in much better/shorter words what i wanted to answer myself.
Steve,
nice shots,
but that tower and the shown road system are not existing here at Cap Cana Punta Cana, so i assume you just tried to put a picture on what some investor's gathering real estate mutants like Cap Cana S.A. and Trump aso brought up as 'power point presentations' to show what may be possible to come up if someone flips the needed money over to do so.
latest deadline is the 60 days course to fill up that minimum on the backup account.
somebody has more actual news on the project?
Mike

You got the status of the tower, its not built... yet, but the roads? If they are not existing then please explain this:

Hmm.. that looks like roads to me and on the bluff where the Trump development is taking place. :surprised

-NALs

 

[Ogre of the Caribbean]

So, if you are living in a house that you own inside of CapCana and the place goes bankrupt, what does that mean? Could you be kicked out of your home? If you stayed would the rest of the place be left to fall apart?

 

[MikeFisher]

who knows?
there are enough owners who could come together and pay their own private security firm to secure the site.
NALS, of course there are roads present, and very good ones btw.
the only good roads we have in the whole PC area are the private roads of Grupo Punta Cana and Cap Cana.
the Trump Tower:
in the whole area private home owners and hotels are not allowed to raise buildings over the height of the palm trees, by law, so why a Trump project is allowed to do so? lets start to make the east coast finally a cememnt block ocean front city like we have it in spain?
skyscrappers should stay out of the vicinity of PC.
but just my own opinion of course.
Mike

 

[STEVE G.]

yes David(catch),

Steve,
nice shots,
but that tower and the shown road system are not existing here at Cap Cana Punta Cana, so i assume you just tried to put a picture on what some investor's gathering real estate mutants like Cap Cana S.A. and Trump aso brought up as 'power point presentations' to show what may be possible to come up if someone flips the needed money over to do so....

It's a rendition MikeFisher . I wrote above the first posted image ''Trump Tower at Cap Cana : Renders of what is or was going to be built'' and thanks NALs for the updates pics on the site . I was about to post those as well .

 

[STEVE G.]

...the Trump Tower:
in the whole area private home owners and hotels are not allowed to raise buildings over the height of the palm trees, by law, so why a Trump project is allowed to do so?...

''Con el decreto #... el Poder Ejecutivo (El presidente de la Rep?blica) otorga permisos de construcci?n ....'' I guess .

 

[Mason3000]

"So, if you are living in a house that you own inside of CapCana and the place goes bankrupt, what does that mean? Could you be kicked out of your home? If you stayed would the rest of the place be left to fall apart?"

Your bank is 99% backed by one of the big boys CitiBank-DeutscheBank-Credit Suizo, etc. Which means IF your bank should tank, your loan defaults to one of the big boys holding the note, if they should tank it defaults to Freddy/Fanny (most likely?) or wherever it goes (choose your Government) and gets bailed out.

If that fails the will be no Government to take it away and banks across the world will have collapsed. In that case, plant a victory garden, get a few shotguns, protect your own and reload your own shells.

 

[Ogre of the Caribbean]

"So, if you are living in a house that you own inside of CapCana and the place goes bankrupt, what does that mean? Could you be kicked out of your home? If you stayed would the rest of the place be left to fall apart?"

Your bank is 99% backed by one of the big boys CitiBank-DeutscheBank-Credit Suizo, etc. Which means IF your bank should tank, your loan defaults to one of the big boys holding the note, if they should tank it defaults to Freddy/Fanny (most likely?) or wherever it goes (choose your Government) and gets bailed out.

If that fails the will be no Government to take it away and banks across the world will have collapsed. In that case, plant a victory garden, get a few shotguns, protect your own and reload your own shells.

I wasn't talking about the global banking system. I was only asking about CapCana. If that resort goes bust, what would it mean for the homeowners living there?

 

[Lambada]

Cap Cana Announces Break Down of Negotiations with Bridge Loan Creditors: Financial News - Yahoo! Finance

 

[STEVE G.]

Cap Cana on the verge of going into bankruptcy, failed to honor promissory note U.S. dollars .
The company recently canceled some 1500 employees

Santo Domingo. The luxurious ship of Cap Cana waters appears to have done with the financial turmoil that exacerbated their economic situation.

In a press release of 14 this month, Cap Cana announced that talks with creditors of a bridging loan of U.S. $ 100 million, managed by Morgan Stanley and Deutsche Bank did not reach any agreement. The meeting took place on Friday, November 14 this year.

Cap Cana's efforts to extend the term of the loan which expires today not persuaded creditors, which include several funds, to which the firms had mentioned the syndicated loan.

With the crisis, many funds are struggling to redeem loans, with liquidations and forced down their debts.

The main shareholders of Cap Cana offered to inject capital to avoid the "default", but the prevailing climate and the prospect of a sharp fall in the real estate market tourism in the Caribbean, had left the lenders.

Cap Cana had begun a process of sudden loss of jobs, eliminating 1500 jobs, outsourcing of certain services and the cessation of non-essential services.

Ricardo Hazoury, president of Cap Cana, issued a statement in which he asserts that "our project has been affected by an economic tsunami that has crippled the global financial markets. We are disappointed because we were unable to reach agreement with creditors and our priority is to remain committed to the long-term viability of our project. "

The difficulties

On Oct. 31, Fitch Ratings downgraded the rating of the issuance of U.S. $ 250 million dollars of Cap Cana, the 'B' to 'CCC/RR4', with a negative outlook. The lack of access to capital and a significant drop in property sales has created a lack of liquidity for the bill that limited their ability to operate normally.

The "default" in the bridge loan would entail a cross default of the notes that mature in 2013.

In a recent note, Cap Cana recognized the imminence of "default" crossfire, and the difficulties of the project to generate sufficient cash to continue operating efficiently.

The road show

In October 2007, Cap Cana launched a "road show" in the international capital markets, with the intention of placing a broadcast of U.S. $ 500 million. Efforts led by Deutsche Bank Securities and Morgan Stanley, could not generate enough interest and the issue had to be postponed. As a result, these institutions gave him U.S. $ 100 million at Cap Cana to enable him to continue the project. That loan expires today. The fall of Lehman Brothers just before the deadline for a new financing, put in "default" to Cap Cana.... Cap Cana a punto de ir a la quiebra; no pudo honrar pagar? d?lares - DiarioLibre.com

 

[Golo100]

there goes my retirement Frank

Well Frank, I hope for your own and my sake everything goes well with the Metro Country Club project. The last time I visited with you, you told me how you left Germany for good to live in Juan Dolio and you never plan to go back. Of course, Germany is not holding much promise either. But I sure hope things pick up at Juan Dolio.
For all I know the new project by Metro had a BBB+ ratings by Fitch. Has it been changed? The project has a guaranteed with the property(land and buildings) itself. But it is spread over 1600 titles of US$10,000 each. Is the property and construction worth that much to pay off its investors in case of default?(almost RD$600 million pesos)
What happens to apartment buyers? Do they lose their investment because they have to pay off investors first? Are suppliers left holding the bag?
Maybe someone has more information on this that's not coming just from Frank. How's the Asilis group holding now? Does anyone have real sales information on this project? How much have they raised on the $16 million issue?
Golo

 

[Lambada]

Steve G. - the article is already in English in the English language version of DL
Cap Cana near bankruptcy - DiarioLibre.com