Resort reports £70m losses
RESORT Hotels, whose shares were suspended by the stock exchange last July, this week reported losses of £71m after being forced to make huge property write-downs.
As Caterer went to press the board had yet to issue a statement, but it is likely that the previous year's pre-tax profits of £6m on turnover of £16.1m will have been restated.
Former managing director Robert Feld immediately tendered his resignation, and the other directors are expected to follow suit when the company restructures.
It is understood the banks are close to reaching agreement on the terms of the restructuring, which, as in the case of Queens Moat Houses, will probably result in shareholders losing most of the value of their holding.
Mr Feld, who was managing director of the company for 10 years up until events last July, remains the largest individual shareholder. He expressed the hope that there would be "a satisfactory resolution to the current difficulties".
A moratorium of three months on legal action against him has been agreed by Resort, which had sought to have him removed from the board. Although strenuously defending himself against the accusations levelled against him, Mr Feld told Caterer he had decided to step down "in sympathy and understanding" with the plight of shareholders and lenders.
lSee also page 14.
