It is now official.
The merger of Cay Clubs with Keys Hospitality Acquisition Corp has been terminated.
As a result, Cay Clubs may have extreme difficulty in avoiding bankruptcy - given they are already late on payments and near default on large loans.
According to filings with the Securities and Exchange Commission (SEC), the merger was terminated because of "The deterioration of Cay Clubs' market in Florida, the liquidity problems it is facing and the recent unavailability of jumbo mortgages for potential condo-hotel buyers have made it highly unlikely that certain closing conditions contained in the agreement could be met."
Cay Clubs is among the largest developers in the Florida Keys - having bought numerous properties at the peak of the real estate market.
Should Cay Clubs become enter bankruptcy, the implications for the Florida Keys could be significant.
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