Resort faces cash crisis
THE Hyatt Regency Coolum does not have enough money in the bank account to continue paying its 650 employees beyond two more weeks.
Administrator Ginette Muller from KordaMentha held an urgent meeting with staff on Monday.
There they were informed of the bleak situation.
Ms Muller said Hyatt Australia had been "asked to put money in the account" to guarantee salaries. This has not happened yet.
"They might surprise us all and funding will appear in the bank to guarantee ongoing operations," she said.
Ms Muller said the meetings were to inform staff of "the difficulties that lay ahead"
"Hyatt controls the bank account, but by our projections, there is not sufficient money to trade," she said.
The $1 million offer from Hyatt to administrators to allow working operations at the resort to continue has not been accepted as it has "many strings attached".
"The security sought is a mortgage over another entity, not Coolum Resort Pty Ltd," Ms Muller said.
"The administrator has also not accepted the $1 million offer from Clive Palmer to allow trading to continue.
"It also has strings attached. It is offered on the proviso Hyatt leaves.
"Neither of the offers works at the moment."
The Hyatt did not answer specific questions yesterday about the future of staff but sent an email full of legal jargon.
"Hyatt, in its role of manager, acts as agent for the owning entities. As the owning entities are currently in administration, the Voluntary Administrator is currently acting 'in the shoes' of the owning entities, and she is therefore in position to address questions as to the financial issues facing the Resort," it said.
Ms Muller also sent a circular to creditors and suppliers on Monday advising that anyone who received money from Hyatt after February 27 might have to pay it back.
This includes people who have paid deposits for weddings, conferences and accommodation after March 7.
Hyatt general manager Maurice Holland said yesterday they were working in "very challenging times".
"We are trying to do the best we can to get a resolution," Mr Holland said.
The frantic mother of a person employed at the Hyatt came in to the Daily's office yesterday trying to find answers.
She said staff had been "sworn to silence" by the Hyatt.
"After the meeting, no one knows what is going on," she said.