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Contractors still unpaid at Caroline Bay

Work in progress: Caroline Bay condominium blocks under construction at Morgan’s Point

Construction firms remain unpaid for their work on the stalled Caroline Bay hotel and homes development, two sources said yesterday.

One contractor, who asked not to be named, said he had “heard nothing official and received no money”.

The news came three weeks after the developers of the West End resort on the site of the old Morgan’s Point US military base, Caroline Bay Ltd, announced an agreement to refinance the project.

The contractor said any refinancing agreement would probably be provisional as a new Special Development Order, which would have to be backed by Parliament, would be needed to finalise the arrangement.

ZBM reported on Tuesday that early financial backers of the project, Arch Reinsurance and Axis Capital, were unhappy with the refinancing and wanted to pull out.

The firms were said to have taken on lawyers in a bid to recoup their investments.

The contractor said: “It will probably be the same for Arch and Axis, after radio silence at Caroline Bay’s end, they have run out of patience.”

He added: “Not much has changed. The only information I received from the developers was that they had signed a new deal.”

More than 25 sub contractors are said to be owed money for the development, which also includes a superyacht marina, as well as a Ritz-Carlton hotel.

Caroline Bay Limited announced last month that they were to obtain new backing.

New financing was said to be in the works from a British-based financial services group, Ma Neil.

Both Arch and Axis declined to comment last night.

The developers did not respond to a request for comment by press time.