Cap Cana – DR
Cap Cana, S.A. announced today that its talks with the lenders of a US$100 million Bridge Loan arranged by Morgan Stanley and Deutsche Bank broke down on Friday, November 14, 2008.
Efforts by Cap Cana’s principal shareholders to renegotiate and a request to extend the terms of the Bridge Loan, which matures on November 19, 2008, were not sufficient to satisfy the creditors (which included hedge funds) to which these two firms had syndicated the Loan. Many hedge funds are struggling with redemptions, forced liquidations, and de-leveraging.
The company’s principal shareholders offered significant injections of capital to forestall a default under the Bridge Loan, proposing alternatives to the lenders that Cap Cana considered sensible given prevailing market conditions.
Recent strategic initiatives by the company’s Board of Directors have been implemented to prepare Cap Cana for a sustained downturn in the Caribbean real estate market as the effects of the global economic crisis begin to take hold in the Dominican Republic and other smaller economies. These initiatives include headcount reduction, outsourcing of certain services, and cessation of non-essential activities.
Dr. Ricardo Hazoury, President of Cap Cana, issued the following statement, “Our commitment to this project and to the Dominican Republic is paramount and without compromise. We intend to pursue a business plan that seeks to maximize the long-term success and viability of the Cap Cana development for the benefit of all our stakeholders.
It is a significant project for the country that supports thousands of jobs and provides significant revenue sources to the Dominican Republic. Our project has been affected by the economic tsunami that has paralyzed the global financial markets. We are disappointed that we could not come to an agreement with the creditors and our priority is to remain committed to the long-term viability and success of the project.”
Cap Cana is a 30,000-acre luxury, second-home real estate project under development and is located in Altagracia province, on the easternmost tip of the Dominican Republic.




Por novena ocasión será celebrado el Dominican Republic Jazz Festival, del 6 al 9 de noviembre en Santiago y Cabarete.