Kerzner backed into a corner over Atlantis sale

Kerzner backed into a corner over Atlantis sale

Reports suggest Kerzner International is exploring the possibility of selling its stake in the Atlantis resort in Dubai as it seeks to restructure its debts.

The conglomerate presently holds a 50 per cent stake in the development as part of a wider luxury travel portfolio.

The company has debts running to $2.6 billion, with the proceeds of any sale likely to be used to pay down the debt on the Atlantis Resort on Paradise Island in The Bahamas.

According to reports in the Wall Street Journal, Istithmar World has been lined up as a potential purchaser of the stake.

Estimates suggest the sale could net Kerzner upward of $250 million.
 
Owned by the Dubai government, Istithmar World already owns 50 per cent of the Dubai Atlantis.

Additionally they own a 31 per cent stake in Kerzner.