Grand Soleil officials exploring all options

By Mary Hood (Contact) | The Natchez Democrat

Originally published 12:00 a.m., February 26, 2009
Updated 01:30 p.m., February 26, 2009

NATCHEZ — Attorney for the Grand Soleil Kent Hudson said all options will be exhausted in order to halt foreclosure proceedings on the hotel, but finding new investors won’t be likely in time for Friday’s hearing.

“We’re going to take measures to stop the foreclosure one way or other,” he said.

The foreclosure hearing for three tracts of land will take place Friday. The foreclosure notice was issued by Britton & Koontz Bank earlier this month will take place Friday.

Hudson said he is currently working on finding interim financing for the $3.7 million short-term loan the Grand Soleil received from the bank.

This is a stopgap measure of sorts, and it is to prevent the foreclosure from moving forward, he said.

He said the long-term goal and the bigger picture is an overhaul of the hotel and proposed casino’s financing.

“We’re working on a larger project of attracting and negotiating with outside third-party investors for the entire project,” Hudson said.

With a weakened economy and a market crisis, Hudson said institutional investors are no longer the way to go.

“Institutional financing is just nonexistent at this point,” he said.

Hudson said finding and securing investors, however, is a lengthy process, and the likelihood of doing so by Friday’s foreclosure hearing is slim to none.

That is why he is working on other measures of funding to bridge the gap until individual or private investors are secured.

Hudson said if the interim funding doesn’t work, that’s not the end of the efforts to stop the foreclosure.

“Whether it be through the court system or not, we will take whatever measure,” he said.

In addition to the foreclosure notice, three local contractors recently filed liens against Grand Soleil for a total of $1.6 million.

“The last thing (Grand Soleil) wants to do is cause them to sustain a loss,” Hudson said.

He said while he feels certain the foreclosure will not come to fruition, if it did the contractors would still be owed their money.

“There would still be an obligation,” Hudson said.

The foreclosure hearing is set to take place between 11 a.m. and 4 p.m. Friday at the Adams County Courthouse.

Britton & Koontz officials declined comment.