In an announcement, Kerzner International Hotels Ltd has completed a deal to restructure its US$145 million debt. The company is the builder of the Atlantis Resorts in the Bahamas and Dubai respectively.
The company also said that the restructuring deal would reduce its interests costs and allow it flexibility to reinvest in new projects. According to CEO Alan Leibman through an emailed statement, "With substanially less debt and with access to additional cash, we can continue our focus on growth plans to develop new experiences around the world."
A few months back, Kerzner sold its 50% shareholdings in Atlantis Resort in Dubai. This shareholdings included ownership of Atlantis Paradise Island in the Bahamas and the Bahamas One&Only Ocean Club, all of which were transferred to its creditor Brookfield Asset Management.
The luxury hotel operator has been mired in debt since a leveraged buyout worth US$3.6 billion in 2006 was undertaken by its founder Sol Kerzner to privatize the company. It has not been able to recover since.
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