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Scrub Island Resort reportedly bankrupt

- Staff to know company status by month end- Sources
Reliable sources have informed Virgin Islands News Online that First Bank is currently the legal owner of Scrub Island Resort, which has allegedly found itself bankrupt. Photo: VINO/File
Scrub Island Manager Binny Sebastian could not be reached for comment. Photo: VINO/File
Scrub Island Manager Binny Sebastian could not be reached for comment. Photo: VINO/File
ROAD TOWN, Tortola, VI - Reliable sources have informed Virgin Islands News Online that First Bank is currently the legal owner of Scrub Island Resort, which has allegedly found itself bankrupt.

While efforts to reach the resort's management as well as First Bank for comments were futile, several members of staff have confirmed this information.

They claimed that a few weeks ago all members of staff were summoned to an emergency meeting where they were told that the company would know exactly where it stands by the end of this month, November 2013.

One employee said that while they were told their jobs were secured they needed to assist in increasing business for the resort.

"They told us at that emergency meeting that they had about 28 days to know if the bank will possess the resort or if they (the bank) would give Mainsail a chance to redeem itself," related an employee. 

It was also related that the employees were told that their salaries and other financial commitments were being handled by First Bank as the company had no money. 

They also said that several persons were recently fired for un-related matters but a senior manager was forced to leave the company.

Sources close to the resort also informed Virgin Islands News Online that an audit was recently conducted at the resort and allegedly found mismanagement of finances, including overspending.

Mainsail Lodging and Development, on behalf of Scrub Island Development Group (SIDG), was contracted as both the developer for the project and the operator of the completed resort and residential community.

Mainsail is one of the partners making up SIDG, the entity which holds exclusive ownership of Scrub Island.

Meanwhile, according to a report published by Bloomberg today, November 20, 2013 Scrub Island Development Group Ltd. sought bankruptcy protection to terminate a receivership it claims was secretly put in place by its lender.

The company listed debt and assets of more than $100 million each in Chapter 11 documents filed Nov. 19 in U.S. Bankruptcy Court in Tampa, Florida, where it is based, Bloomberg reported.

“The case is In re Scrub Island Development Group Ltd., 13-15285, U.S. Bankruptcy Court, Middle District of Florida (Tampa),” the news entity stated.

38 Responses to “Scrub Island Resort reportedly bankrupt”

  • virgin gorda (20/11/2013, 18:21) Like (6) Dislike (9) Reply

    Hey B***y what up with that Bad management wow the BVI is real yes we're small but the Big country f*aud na go work

    • Marie (21/11/2013, 09:26) Like (18) Dislike (0) Reply
      I agree. This could only have happened with bad management. Scrub acted like they didn't want the regular people's dollars and were counting on tourism to make them rich. Well, go get your tourists now to pull you out of this mess. As far as our politicians always running over there for luncheons and meetings etc. they should have been supporting more local restaurants so they could stay afloat. Everything here is going downhill in a mudslide all because of mismanagement everywhere we turn.
  • pat (20/11/2013, 18:47) Like (11) Dislike (3) Reply
    where is the rubust economy
  • TING (20/11/2013, 18:51) Like (8) Dislike (4) Reply

    Another fall while this *#a1 we got for a leader talking piss about a robust economy another reason why NDP must go

    • johannes (21/11/2013, 08:09) Like (10) Dislike (4) Reply
      What does our leader have to do with scrub island bankruptcy, does the resort belong to him? You people need to read, put your brain in gear before you engage your pen. Come on now everything does not have to be NDP. An accident happen through negligence is NDP only when people cannot get on a horse's ass he bad get rid of him. It is time for us as citizens get with the program and try to develop solutions rather than breaking down. When there is community meetings only a handful of people attend but the blogs full of bull stop hiding behind your computer get your tail to the live discussions there is where you can put forward solutions STOP THE CRITICISM AND BE POSITIVE>
  • cccc (20/11/2013, 18:54) Like (25) Dislike (2) Reply
    Dem sell out politicians eat ova dey for free too much so it must go belly up!!!
    • he and he and he (20/11/2013, 21:01) Like (3) Dislike (2) Reply
      calls some names
    • Kev (22/11/2013, 13:08) Like (2) Dislike (0) Reply
      They don't eat for free, they pay with the Government's money. They are always supporting others and never think to visit at least once, all eating establishments in the BVI. Bunch of sellouts and hope they choke on the next non-local meal!
  • Hmmm (20/11/2013, 19:26) Like (9) Dislike (2) Reply
    "Sources close to the resort also informed Virgin Islands News Online that an audit was recently conducted at the resort and allegedly found mismanagement of finances, including overspending."

    People read this and still somehow find it fit to blame BVI and Government? SMH
    • Well (21/11/2013, 09:10) Like (4) Dislike (3) Reply
      yes be cause it has long been confirmed that the majority of bloggers on here have no sense and would like the politicians to stop by their door every evening with their daily handouts...so it is impossible for them to comprehend logic.
      • Guess (21/11/2013, 10:46) Like (1) Dislike (2) Reply
        How do we really know it is VIslanders blogging? Could possibly be other nationalities trying to paint us in a bad light!
  • big shot (20/11/2013, 19:40) Like (4) Dislike (0) Reply
    hope its not to big to fail
  • ooooo (20/11/2013, 21:38) Like (7) Dislike (4) Reply
    another one kicks the bucket under ndp's watch
  • JW (20/11/2013, 21:47) Like (3) Dislike (4) Reply
    Let me hear the ndp bragging now.
  • reality (20/11/2013, 23:35) Like (4) Dislike (2) Reply
    Would all you idiots who blame the NDP government get a life and read a book! This is a foreign company doing business with a Puerto Rican Bank that is in financial trouble, the BVI government does not own or run the resort!
    • never vote again (21/11/2013, 06:42) Like (6) Dislike (0) Reply
      a bad move from the start yes its an ndp project.
    • S.R. (21/11/2013, 08:54) Like (2) Dislike (1) Reply
      I suppose the airport will not be/is not an NDP proposal that will fail. (Or has and NDP won't admit it)
  • Wicked (21/11/2013, 00:30) Like (4) Dislike (0) Reply
    carmer is a btch they doing wrong over there long time to the staff and business
  • Wicked (21/11/2013, 01:07) Like (6) Dislike (0) Reply
    the past manager was only there for himself and mr b***Y doing the same run the hotel down to nothing
    • tola (24/11/2013, 13:09) Like (2) Dislike (2) Reply
      Correct all and b***y is the same look what is happening now how can you say your hotel is running normal if you file for bankruptcy".."........ Too bad for the company and staff with bad management.
  • Winston (21/11/2013, 05:24) Like (15) Dislike (0) Reply
    Thank God for the yachting industry. It seems to be the only stable industry we have these days,
  • Wicked (21/11/2013, 08:33) Like (3) Dislike (0) Reply
    i want to see now what labour is going to do with the cases they have against scrub
  • S.R. (21/11/2013, 08:57) Like (3) Dislike (0) Reply
    Yachting is it; Government has not come up with a way to interfere, Sailor's do not travel pot hole roads (except to & from airport). Don't have to smell sewers at sea. Power does not go out at sea. etc.etc.
  • Kev (21/11/2013, 09:29) Like (9) Dislike (0) Reply
    How is Benny Sebastian supposed to be reached for comment (see the picture) with those knockers holding him tight? Ha!
    • Kenny (21/11/2013, 10:26) Like (6) Dislike (0) Reply
      LOL That's the first thing I thought! He is looking like "Lawd hav Musee" LOL
  • talk (21/11/2013, 10:18) Like (0) Dislike (0) Reply
    more sad news for our economy means more lay offs
  • DON Q (21/11/2013, 11:19) Like (0) Dislike (0) Reply

    Good thing Smith changed he Glover park word about a robust economy

  • wise up (21/11/2013, 11:32) Like (1) Dislike (0) Reply
    and we crying foul at our local business man;
  • Macnamara (21/11/2013, 12:28) Like (9) Dislike (1) Reply
    Scrub Island Development was wrong from the start all those years ago and many people said so. They not only destroyed a beautiful pristine island but dive sites as well. Sadly now jobs are at stake. Let's hope this is a lesson to the Government to stop mindless Multi Million Dollar developments.
  • Talk Tourism (21/11/2013, 12:54) Like (6) Dislike (1) Reply
    Something like this is not only bad news for Scrub's workers and Management. It is bad news for the territory's tourism industry as a whole. No need for negativity and blame game. Usually in any institution Management is guided by rules and regulations set up by ownership which may or may not be the best practice but must be followed in any case. A five star resort anywhere is rated on high quality delivery of service. Therefore, this may mean high staffing guides to support the delivery of such service standards, which means payroll being one of the highest operating costs could skyrocket if not carefully managed. I have visited Scrub on a few occassions and have seen not a large number of guests. Maybe for whatever reason they were on an excursion or whatever. I did noticed a good number of local paying guests which was great. tells me that they are local friendly. The property I must say is clean like other BVI properties. Their marina is good but certainly not the best in the BVI. Overall it is a lovely property but it would be interesting to view their occupancy reports supporting their expenses and five star status. Again, we as B.V.I residents must not glory in their challenges as it affects all of us directly or indirectly. Peace.
  • Positive (22/11/2013, 16:17) Like (1) Dislike (0) Reply
    No need to curse or fight the facts are broadly given BAD MANAGEMENT let us face reality.
  • Dulcina (22/11/2013, 17:39) Like (0) Dislike (0) Reply
    Opportunity for local ownership?t
    Think about it, get together ...BVI Investment Club members or a similar local group would be smart to seize the oportunity...opportunity like this is rare...
  • Just saying (22/11/2013, 18:15) Like (1) Dislike (0) Reply

    scrub ayo need to get ayo @$$ back up

  • Jose (23/11/2013, 01:59) Like (0) Dislike (0) Reply
    There is more to this story that needs further explanation
  • Fairness (24/11/2013, 13:14) Like (0) Dislike (0) Reply
    There is NOT one bright spot in the NDP 2 years in office, we will remeber the goverment that took the BVI to an economic disaster


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