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From out friends over at Jamaica-Gleener.com (via Collinder, Business Writer)

Runaway Bay Developments, the company that owns SuperFun Beach Resort and Spa, the former Hedonism III, has been placed in receivership by its first-ranked creditors of four banks to recover a debt of US$20 million.

John Lee of Pricewaterhouse-Coopers (PwC), who was named the receiver and manager of RBDL in February, began marketing the property days later.

The hotel is managed by SuperClubs under an operating lease. PwC said Thursday that the contract would remain in effect until the property is sold.

The sale comes as SuperClubs announced that it was cutting ties with another government-owned property, Breezes Rio Bueno.

The resort group said it would end its management of Rio Bueno on April 30 after failed negotiations with the National Insurance Fund (NIF).

"Where an operation in Jamaica or elsewhere is no longer viable, we cannot continue to subsidise them in this very competitive marketplace," said Zein Nakash, SuperClubs vice-president of marketing and environmental affairs.

SuperClubs Chairman John Issa said the closure came after a "strenuous two-year effort to arrive at a mutually satisfactory lease arrangement with the owners", and that the termination of the arrangement would cost 300 jobs.

The hotel was started in 1999 under the Hedonism III brand, with Issa agreeing to invest and run the property with a clause that gave him the right to mat ch any offer for the remaining stake.

The resort was closed in May 2010 for refurbishing and rebranding. It reopened on October 14, 2010, as SuperFun Beach Resort and Spa, catering to a more conservative market.

The Hedonism name was known for adult entertainment, including at least two controversial nude mass weddings.

The SuperFun, Hedonism and Breezes brands are owned by SuperClubs.

For the entire article please visit: Jamaica-Gleener.com


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