By Anonymous

Copyright caymannewsservice

(CNS): The partners behind the stalled Kailani boutique hotel project currently under construction in George Town have filed a petition in the Financial Services Division of the Grand Court to wind up the local developer, NCB Investments Ltd, on the grounds that the firm owes them over $1.5 million.

The petition filed by Quayside Holdings and Sandy Shoales states that NCB Investments had entered into a deal to settle a debt dispute and agreed to make payments in three instalments over the following months. But the petition states that nothing has been paid at the time of filling just over a week ago.

The project secured planning permission in 2017 and had an original target completion date of 2019, but has been an on-off affair for several years, having been impacted by COVID and the lockdown. However, this is a dramatic turn for the future of the project, which was billed as Cayman’s first luxury wellness and business boutique hotel, located across from Kirk’s Market on the George Town shoreline.

The petitioners claim NCB Investments, part of the well-known and established local developers the NCB Group, has failed to pay the installments that were due in April, May and June, and want the court to confirm that the owners are unable to pay the debt, is therefore insolvent and should be wound up in accordance with the Companies Act.

Lawyers acting for the petitioners contacted NCB’s lawyers asking for the payment by 30 April after the first installment was missed.

NCB confirmed it would make that payment by then, but in the event something happened, both payments would be made before 30 May. But no payments were made, according to the petitioners, and after more demands, there was still no money.

“As at the date of this Petition, the Company has failed to pay the Debt or any part thereof or to secure or compound for the same to the satisfaction of the Petitioners. The Debt remains due and payable by the Company to the Petitioners,” they stated in the legal action filed on 9 September.

Earlier this year, speculation had mounted that the project was in trouble. According to a quote given to the Cayman Compass by NCB in July, hotel unit sales were more gradual than initially projected.

Following the completion of the hotel shell and roof topping late last year, the company had “made a strategic decision to pause exterior works to refine Kailani’s completion strategy”. However, NCB said they were “moving confidently into the next phase of construction”.

Meanwhile, the petitioners are asking the court to appoint John Royle and Sandipan Bhowmik from Grant Thornton as official liquidators. The court hearing for the petition in court is set for 17 October.

CNS contacted NCB for comment. In response, Matthew Wight, Managing Director of NCB Group, said, “Unfortunately, there’s not much we’re able to say given that it’s a legal matter, however, we can say that it is our intention to have this matter amicably resolved outside of court prior to the matter proceeding to court.”

See the petition in full below.