Developer active in Florida has a cash crunch [South Florida]
Even as the condo market flattened in 2006, Cay Clubs sold more than $300 million in condos in a portfolio stretching from Crested Butte, Colo., to Marathon. Last year’s profit: $46 million.
Now the company says it’s in a cash crunch, without enough money to cover lease-back agreements with as many as 140 condo buyers.
Where did the $46 million go? Most of it — $41 million — was paid out to Chief Executive Officer Dave Clark, President David Schwarz and their minority partners, according to corporate records and interviews with executives.
Acting Chief Financial Officer Mike Matte said the executives invested most of the money in ventures not covered by financial statements needed for Cay Clubs to complete its planned merger with a publicly traded shell company later this year.