Responding to Carambola Beach Resort falling behind on a $15 million loan, the V.I. Government Employee Retirement System is considering delaying payments so the resort can devote its cash to finishing renovations and begin receiving income on all its rooms, GERS Administrator Austin Nibbs confirmed Thursday.
"They have missed principal and interest payments and have asked for some restructuring," Nibbs said in a phone conversation Thursday afternoon. On Wednesday, Carambola submitted a proposal and GERS is going to have its financial consultants review it, he said.
"They are renovating all the hotel rooms and so far they have completed 84 of them, so one thing they want is to use those monies to complete the rooms so they can rent them out, put them into production and pay us," Nibbs said. "They are asking for a little reprieve to finish those rooms."
Carambola’s attorney Tom Bolt confirmed the broad outlines of the proposal Thursday, but would not go into details.
"The goal is to make sure the hotel is on a solid footing and can proceed with operations, capital improvements as well as satisfy debt service," Bolt said. "All three must work together."
GERS plans to move deliberately, but quickly, according to Nibbs.
"We have to do our due diligence," Nibbs said. "A report will be given to us by the financial consultant and we will have another presentation by Carambola," he said, adding that he hopes a decision can be made within 30 days."
