Bloomberg News

Kerzner’s $2.48 Billion of Debt Sent to Servicer, Fitch Reports

January 26, 2012

Jan. 26 (Bloomberg) -- Almost $2.48 billion in debt backed by Kerzner International Holdings Ltd.’s Atlantis resorts in the Bahamas was sent to a special servicer, Fitch Ratings said.

The debt was sent to Wells Fargo & Co. because of maturity default, the credit-rating firm wrote in an e-mail yesterday. The Atlantis resort and casino on Paradise Island and the Marina at Atlantis are in the Kerzner portfolio, Fitch said.

Brookfield Asset Management this month canceled its deal to exchange debt for Kerzner properties. Kerzner in November agreed to hand ownership of its flagship Atlantis resort to the Toronto-based real estate investor as part of a debt restructuring. Brookfield at the time planned to forgive $175 million of junior debt for ownership of the Atlantis and the Bahamas One&Only Ocean Club, as well as a half interest in the One&Only Palmilla in Mexico.

The properties Brookfield planned to take over had about $2.6 billion in debt when negotiations began. That would have shrunk to about $2.3 billion with Brookfield’s forgiveness and an earlier $100 million payment that was part of a maturity extension.

Jennifer Ferguson, a Kerzner spokeswoman, didn’t immediately return a telephone message and e-mail seeking comment today.

--Editors: Daniel Taub, Christine Maurus

To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net

To contact the editor responsible for this story: Daniel Taub at dtaub@bloomberg.net


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