Allegiant halts Sunseeker project indefinitely in Charlotte Harbor
Allegiant Air’s Sunseeker Resort project in Charlotte Harbor is on hold indefinitely, WINK News confirmed.
The announcement happened during the 4th Quarter Earnings Call on May 12.
This comes after Allegiant halted the construction of Sunseeker due to the coronavirus pandemic.
Allegiant says it will not put any more capital into the project for at least 18 months and later, it said indefinitely.
The company is working to preserve its most important assets of its model — the airline.
It says this is due to “A focus of ours coming out of this environment will be to quickly restore our balance sheet.”
More Allegiant Air statements from call
The following was spoken by Allegiant President John Redmond during the conference call:
“One of these difficult but required decisions was to shut down the Sunseeker Resort development. We have said from the outset, the most important component of our model is the airline. We have to do everything we can to preserve the cash register and the earnings release outlines numerous additional steps that have been taken to date. We will not put any more capital into the project for at least the next 18 months as we deliver on our expectations to have the strongest balance sheet when we come out of this. “
The following was spoken by Allegiant CFO Greg Anderson during the conference call:
“Our No. 1 priority is to ensure survival and long-term success. In order to make this happen, we have suspended construction indefinitely on Sunseeker and restructured Teesnap and nonstop to be self-sufficient in terms of cash flow. As a result of suspending construction on Sunseeker, coupled with no current plans to complete, we have recognized $137 million impairment over its related assets writing them down to a fair market value of roughly $35 million. A focus of ours coming out of this environment will be to quickly restore our balance sheet.”