The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bewildered homeowners at a major Abaco resort/marina development yesterday told Tribune Business they were “a bit freaked out” after a team from Grant Thornton (Bahamas), backed by police officers, took over the site and removed the long-standing property managers.

This newspaper has seen e-mails confirming that around noon on December 12, the Marina Office and Restaurant at Guana Cay’s Orchid Bay development were taken over by the Grant Thornton-led team, which subsequently turfed out property managers, Albury’s Property Management.

Tribune Business understands that they were acting on a Supreme Court Order, with the Bahamian accounting firm having been appointed as receivers/managers for Orchid Bay in a bid to recover debts owed to a $27 billion US bank and other creditors.

Charles Kirby, head of the Orchid Bay Homeowners Association, in a Friday, December 13, e-mail seen by this newspaper, confirmed: “Synovus Bank foreclosed on Orchid Bay (Guana Cay Development Company yesterday.

“According to Derek Sweeting of Grant Thornton (Bahamas), their officer Stanley Gomez is the legal receiver. Sweeting is locally in charge, backed up by a constable.”

Mr Kirby’s ‘Stanley’ Gomez is likely to be Paul ‘Andy’ Gomez, managing partner of Grant Thornton (Bahamas). Mr Gomez exclusively confirmed to this newspaper back in October that he was the receiver/manager for the William B. Johnson Investment Company and William B. Johnson entities, which own the outstanding and issued shares in Guana Cay Abaco Development Company. This is the entity that trades as Orchid Bay Marina and Resort.

Synovus is the main lender/creditor of those companies’ principal, businessman William B. Johnson, a well-known American entrepreneur who was once the owner of the Ritz-Carlton hotel chain.

However, existing Orchid Bay homeowners yesterday expressed alarm that arrangements to rent out their homes to other visitors this Christmas might be disrupted, given that Grant Thornton (Bahamas) has seemingly removed the project’s property management company.

Mr Kirby, in his e-mail, said Jimmy and Melonie Albury, who had performed this service via their Albury’s Property Management firm, “ no longer have access to the property”.

He added: “Sweeting agrees to keep the gate manned regardless of the employer. The restaurant and marina will be kept open with the ultimate aim of a sale. Unsold property ownership is extremely cloudy.

“Don’t know if all this is good or bad for us now. Sweeting seems to be a reasonable and knowledgeable person.”

Jon Moseley, a US attorney and one of the Orchid Bay homeowners, describing the Grant Thornton ‘takeover’, told Tribune Business: “They came with two constables, and people here are a bit freaked out. We’re a bit shocked.”

He added that none of the Grant Thornton team had shown Mr Kirby a Supreme Court Order to back up what was happening, which “makes it harder to track back what’s going on.”

A December 12 e-mail from Melonie Albury provided more colour on what happened. She claimed that guests arriving at Orchid Bay had been “harassed”, and that the attorney acting for her and her husband was set to challenge the receivers’ actions in the Supreme Court.

The e-mail, seen by Tribune Business, said that “around noon the Orchid Bay Marina Office and Restaurant compound, including Albury’s Property Management office and our residence, was ‘taken over’ by a group of accountants, managers, computer tech and locksmith accompanied by a police officer.

“They were here to escort us off the premises and out of our residence,” Mrs Albury said. “The man in charge, Derek Sweeting, instructed us to turn over our keys and leave.

“I tried to get your house keys, and my golf cart keys and reservations, but could not. They searched my handbag and we were told to leave the property.”

She added: “They have confiscated everything to do with Orchid Bay and Albury’s Property Management, including my golf carts, your house keys etc. I tried my best yesterday from 8.45 until noon dealing with Mr Sweeting to get the keys for your houses released to do ‘house checks’ and was refused.

“I don’t know their intentions and I strongly recommend that each of you contact Derek Sweeting.... to request that your house keys be released to me, as this week some of you are coming or will be having house guest for the holidays. Guests arrived yesterday asking for me at the Marina Office and were harassed.”

Mrs Albury continued: “I cannot say a lot at this time as I am still in shock that something like this can happen. Our attorney is working diligently to be prepared for Monday morning, as nothing could be done over the weekend, which these people used to their advantage.

“If they somehow deny your request I can have a locksmith re-key your locks (with your permission to gain access) at their expense, as we are preparing a lawsuit. I apologize to all of you that this has happened, but it is totally out of my control. Thank you all for your help and support with this matter.”

Mr Gomez previously told Tribune Business that he was “at the beginning of a long road” in trying to recover debts owed, with Orchid Bay having been recently appraised at $50 million.

He added that he was ultimately looking at selling the 203-acre property, and disclosed that he would “investigate” all property transactions that had taken place over the past five years.

“Our goal is to conserve the value of the property, which was recently appraised at $50 million,” Mr Gomez told Tribune Business.

“We hope to have our client’s [Synovus] claim satisfied and pay off all the other legitimate creditors, and return the remaining funds to Mr Johnson’s estate.”

Apart from a 60-slip mega yacht marina, Orchid Bay also features a marina restaurant and bar, and several “upscale”private home sites. Mr Gomez estimated some of these were worth over $1 million.

Tribune Business was subsequently told that while 60 per cent of Orchid Bay’s existing lots have been sold, just 15-20 houses have been built.

Orchid Bay was looking at expansion almost three years ago, with talk of a 300-slip marina and more private lots. Ministers in the then-Ingraham administration, including Deputy Prime Minister Brent Symonette and environment minister, Earl Deveaux, conducted a visit to the project site in October 2010.

However, Tribune Business understands that Mr Johnson since then has become ill, and run into financial difficulties, owning numerous creditors significant sums.

He is thought to have owned Orchid Bay for some 20 years, and invested considerable sums in installing all the necessary infrastructure.

“There are many issues on the table, and this is the beginning of a long road,” Mr Gomez said previously

“We’re going to investigate all property transactions in the last five years to make sure they were properly authorised.

“My aim is to ensure my client’s [Synovus] claim is perfected, get their money back to my client, assess the true value of the property and then potentially sell it.”