Before the Storm
The government of the island of Nevis has declared the closure of the Four Seasons resort, one of the top luxury hotels in the Caribbean, a “national emergency”. The Four Seasons Nevis closed in October 2008 when it sustained severe property damage from Hurricane Omar. This week, the Sovereign Government of the Island Nation of Nevis filed a motion asking the Delaware court to abstain from hearing the Chapter 11 bankruptcy case filed by the hotel’s owner, Hotel Equity Fund V, LLC. The Nevis government argues that the bankruptcy filing could prevent the reopening of the hotel, Nevis’ largest employer. The government believes that the continued closure of the Four Seasons constitutes a national emergency for the tiny Caribbean state. Disasters can be devastating for the working poor; sadly, this is a universal phenomenon. I remember that after the terrorist attacks on the World Trade Center, three downtown hotels closed, leaving their wait staff and housekeeping staff without income. These poor souls may not be covered by unemployment insurance and almost certainly don’t have adequate savings to cushion the shock. I am making inquiries to find out if the Nevis resort carried business interruption insurance or other coverage for salary continuation or if the economic hardship experienced by the staff is the result of the loss of tip income that was not indemnified by insurance. Does anyone happen to know the answer?