<Blockquote>"THE government intends to write a promissory note to Hutchinson Whampoa to complete the $65m purchase of the Grand Lucayan"</Blockquote>
Okay so the government is doing some kind of seller financing. Wonderful.
<Blockquote> "We've agreed to pay $10m at the signing of the letter of intent," the government insider said, "and another $20m when the sale document is completed and property is conveyed to us. Then, every six months after that pay we'll pay $5m until the balance is liquidated. **I believe there is interest on it, three percent".**</Blockquote>
Great Hutch can make a extra milli on the sale nothing wrong with that right?
<Blockquote> "It's a promissory note. We're giving them a promissory note, it's not a strict loan in a sense. The government is going to borrow money but this whole transaction is an investment so **we're acquiring an asset and it will not count towards our annual deficit. Now if the asset is impaired, if the value goes below what we paid for it, the deficit would have to be shown as a recurrent expenditure**.</Blockquote>
So this is not an expense everybody its an investment as long as you're willing to go to the financial land of make believe and pretend that there will be no loss when it is sold, even though the chairman of the board is expecting a hit on the sale.
Take a look at Greece to see how well all this SPV and other creative accounting tricks in order to hide debt and window dress the books works out.
<Blockquote>The underlying premise is government is not going to be in the hotel business, that is the philosophical bottom line for us.</Blockquote>
This reminds me of when Jay-z used to say I'm not a rapper. 8 albums in. I'm going to buy a restaurant but I'm not going to be in the food business. Who are you going to believe me or your lying eyes.
"What we learnt about the creation of aragonite is that in a human lifetime it is not renewable. They determined the aragonite in the Bahamas, there are different patches of it throughout the country and it has different rates of formation, anywhere between 150 years and 200 years for one grain to precipitate out of the ocean. So we have to be very careful how we manage the resource.”
Does this matter? And why should it matter now? Aragonite mining has been going on from the 70's. Since we are now aware of it's industrial uses it seems to me like they want to protect the market from competitors using this long renewable excuse as justification.
TheWatcher says...
<Blockquote>"THE government intends to write a promissory note to Hutchinson Whampoa to complete the $65m purchase of the Grand Lucayan"</Blockquote>
Okay so the government is doing some kind of seller financing. Wonderful.
<Blockquote>
"We've agreed to pay $10m at the signing of the letter of intent," the government insider said, "and another $20m when the sale document is completed and property is conveyed to us. Then, every six months after that pay we'll pay $5m until the balance is liquidated. **I believe there is interest on it, three percent".**</Blockquote>
Great Hutch can make a extra milli on the sale nothing wrong with that right?
<Blockquote>
"It's a promissory note. We're giving them a promissory note, it's not a strict loan in a sense. The government is going to borrow money but this whole transaction is an investment so **we're acquiring an asset and it will not count towards our annual deficit. Now if the asset is impaired, if the value goes below what we paid for it, the deficit would have to be shown as a recurrent expenditure**.</Blockquote>
So this is not an expense everybody its an investment as long as you're willing to go to the financial land of make believe and pretend that there will be no loss when it is sold, even though the chairman of the board is expecting a hit on the sale.
Take a look at Greece to see how well all this SPV and other creative accounting tricks in order to hide debt and window dress the books works out.
On Payment details revealed for Grand Lucayan purchase
Posted 29 August 2018, 5:07 a.m. Suggest removal
TheWatcher says...
<Blockquote>The underlying premise is government is not going to be in the hotel business, that is the philosophical bottom line for us.</Blockquote>
This reminds me of when Jay-z used to say I'm not a rapper. 8 albums in. I'm going to buy a restaurant but I'm not going to be in the food business. Who are you going to believe me or your lying eyes.
On We’re ready to take a hit on sale price
Posted 27 August 2018, 1:41 p.m. Suggest removal
TheWatcher says...
> Blockquote
"What we learnt about the creation of aragonite is that in a human lifetime it is not renewable. They determined the aragonite in the Bahamas, there are different patches of it throughout the country and it has different rates of formation, anywhere between 150 years and 200 years for one grain to precipitate out of the ocean. So we have to be very careful how we manage the resource.”
Does this matter? And why should it matter now? Aragonite mining has been going on from the 70's. Since we are now aware of it's industrial uses it seems to me like they want to protect the market from competitors using this long renewable excuse as justification.
On Aragonite real value just $2.5m
Posted 25 August 2018, 2:08 p.m. Suggest removal