Tonight - Belize's often murky cruise tourism future is even more unclear. That's after the only cruise port that was close to completion - Stake Bank - was put into receivership yesterday evening by its financier, the Atlantic Bank.
At 150 million dollars and counting, it's the most expensive private project we can recall - and now that's in receivership, what does it mean for the project, and the bank? Jules Vasquez examines the present, the future and the past of Stake Bank:
Yesterday evening, Atlantic Bank put Mike Feinstein's Stake Bank project - known as Port Coral - into receivership. The receivership was initiated on Thursday evening and Marlow Neal has been appointed receiver. With an estimated 150 million BZD invested so far in the island based cruise terminal and tourism village, it is the largest receivership in Belize's banking history.
A spokesperson for the bank told us "the sole purpose of the receivership is to take the project to completion". That is no small task - more than 50 million in additional financing is needed to get it operational. The group of creditors who have financed the project so far are now expected to come together now to find these funds - as Atlantic Bank is already over extended and will not provide more funds. The bank spokesperson says that the projected date for completion under the receivership is 6 months in the best case, on the outside, maybe 9 months. The receiver's priority will be to complete the piers - which are designed to provide direct berthing for cruise ships.
Of course, the receivership is activated because the project - by the bank's assessment - is in peril. The bank is considering "completion risk" - where the Feinstein Group was unable to source the funds to complete the project.
The Bank says it is activating the receivership to protect depositors - and stressed that the bank is, quote "at no risk at all."
The governor of the Central Bank Kareem Michael said the receivership is "core to prudential oversight and risk based supervision" and added that for the bank, "prudential ratios are adequate, particularly on solvency and liquidity."
And while the receiver is now in the driver's seat, Feinstein continues to be the owner of the project - but reports suggest he opposes the receivership and loss of control of a project he has been publicly floating since 2007.
posted (September 19, 2007)
Mike Feinstein - Developer
"We will have duty free shopping, we'll have restaurants, swimming pool, beach activities and vendors, hair braiders - everything has to be done out there as well as in here. So like I said, the opportunity just quadruples really."
Six years later - in 2013, Feinstein formally launched the project:
Mike Feinstein - Developer
"What this whole entire project means to the economy of Belize and presently Belize receives 61 million US dollars from Cruise Tourism, 7 million from crew, the numbers will definitely go up to at least 250 million US dollars and another 40 from the crew. If we can keep 200 million Belize back into the economy here, you're looking at a project that will give back into the economy 700 million Belize dollars a year."
Huge figures, but it would take another six years, one act of parliament and one definitive agreement before we saw a groundbreaking.
Mike Feinstein - Developer, Stake Bank Cruise Port
"It has a very long time, but as I told one of the ministers, I said, I have a tiger by the tail, and I refuse to let it go. It will turn around and bite my ass (beep out "ass") but, I rest my case."
That was February of 2019 and the project was slated to be up and running in 18 to 24 months. And the cost?
Mike Feinstein - Developer, Stake Bank Cruise Port
"The bankers for this project is being led by the Atlantic Bank group. The Atlantic Bank is the lead organizer for the money for this project which is 67 million US dollars on the island and a total of 82 million before this project is done."
But five years later - it still isn't done - and the Atlantic Bank has now moved in to take over the operation and bring it to completion - so that revenue can start to be generated to pay back the enormous debt.
We did reach out to developer Mike Feinstein for comment - but at news time we were still waiting for his call-back. We expect that he will resist the receivership.
