Castlemain had called a meeting of the Ciscap promoters in Ireland. It was time to go public and increase the share capital substantially. It was two years since the project had been officially launched and the Cuban government had approved the overall plan. A concession for the development and exploitation of the site had been granted for fifty years. Land clearing was well advanced and most important the construction of the first phase was progressing nicely.
It was time to report to the promoters on progress and seek new investors and franchisers for the second phase. Castlemain planned to present to the existing shareholders his proposals for increasing the capital of Ciscap to I£100 million with half being offered in options to the existing shareholders and the other half being raised on the market.
With such a capitalisation they had the lever to raise loans of three or more times the capital. That would enable them to complete Phase I and launch Phase II for the new city.
The promoters were not all shareholders. There was the National Investment Board, which had provided the means for the Irish founders to create Ciscap. There were the Cubans who had ceded a fifty-year concession against future rents, they also had the power of veto, which enabled them to have a say in all decisions, even though it was the shareholders who risked their capital in the venture.
The principal risk with Ciscap for the foreign investors was that it was located in Cuba, and a semi-private project, which was a contradiction in itself. This meant that there were no guarantees from the Cuban government, whose worth would in any case have been doubtful. The real estate and businesses could not be offered as securities, as the existing Cuban legislation did not foresee such contingencies, since up until the first timid legislative changes everything had belonged to the state, as in all communist countries.
The result was that the whole risk was borne by the shareholders, however, that was not sufficient to deter the investors who followed the lead of the many foreign groups who had already successfully invested in the tourist industry in Cuba on sites such as Varedero. Ciscap was however another story, in that it was a whole new town, created by a single consortium, together with its tourist installations and all the needs of a complete new city and its inhabitants, both foreign and local.
Cuban politics were the focal point, both for the existing and future investors. The same questions were endlessly discussed; what did Castro think, how old was he, who would replace him, when would the American embargo be lifted?
To Arrowsmith it was a miracle that they had got so far, but he kept that thought to himself, he was enjoying the project like he had never before enjoyed such a challenge.
Castlemain had blind faith, he was almost fanatical in his vision, he had a dream and wanted to go down in history with a city named after him in the Caribbean. He already saw his name on the map of Cuba, he savoured the sound of the name Ciudad Castlemain, it was a good name for a city he thought.
The promoters meeting took place in a castle at Newmarket-on-Fergus, County Clare, an easy thirteen miles from Shannon Airport.
The 16th century castle was set in a magnificent wooded estate with lakes and complete with an 18-hole golf course.
Castlemain had reserved the best suites for his most important guests who included the Cubans, Arrowsmith and Brel. Unfortunately there was also Kennedy, whom he could not overlook and for whom the banker’s secretary had reserved a somewhat less comfortable suite with a view on the car park.
There were also the banks; Erikkson from Bottens Handelsbank, and Gresinski who represented the BNC, not forgetting the National Investment Board, without whom the whole process would have been impossible.
He had also invited Sean Kavanagh, who represented one of his more brilliant investments. He was an outstanding business personality in the public eye, who would participate in the media coverage of the event and the presentation session for new investors, his rise to fame and his vast fortune would almost certainly encourage other investors. In total there were thirty odd people including the architect Isaac Stein and the franchisers, not forgetting a couple of selected press representatives with the BNC public relations manager from Paris, Daniel de Forsta.
The climax would be a public presentation and a gala dinner with the Mayor of Limerick and the Minister of Development from Dublin.
It was a high mass, designed to bestow a blessing on the project and consecration of the construction work on the site which was showing visible progress, thus encouraging the continued assistance of the project’s investors and backers.
Sean Kavanagh, who was neither a golfer, a drinker, nor an enthusiast for that kind of get-together, was nevertheless present, his main interest was to keep Castlemain happy. He was not acquainted with the majority of those present, with the exception of Castlemain and Kennedy, nor was he particularly interested in Cuba, a country of which he knew almost nothing. To avoid being alone in the Irish countryside he press-ganged his partners Jim Carmichael and Phil Moftan into joining the weekend, both of whom enjoyed a good round of golf.
Kennedy found Castlemain in the main meeting room giving final instructions to the staff who were setting up the projectors and writing boards for the presentations.
“So Pat how is life?” Castlemain asked Kennedy.
“Fine, I think I have an interesting investor for the project.”
“Is that so!” said Castlemain raising his eyebrows in mock disbelief.
In spite of the fact that Pat Kennedy had introduced two of Castlemains star players, he was held in low esteem by the autocratic banker. He did not see Kennedy as one of his caste but rather as a one of Ireland’s working-class farmers, and what even worse a distasteful arriviste. It did not prevent Castlemain from using his talents though he did not like to encourage the impression of familiarity.
“Yesh, he’s a South American.”
“A South American! Good for you Pat!” he looked at his papers cutting off the conversation.
Kennedy was not to be put off and tried another gambit.
“How do you think the dollar is going to move?”
“The dollar?”
“Yesh, the exchange rate against the Euro.”
“My goodness Pat,” he paused with a look of surprise at such a question, “well…first if I knew I wouldn’t be wasting my time here….and secondly I wouldn’t let on to you!”
Kennedy gave up and wandered off, his chin in the air to seek more congenial company. He would keep Ortega to himself, he would represent him as a private investor using Ortega’s money to purchase his own options for the new share issue.
In the lobby he grabbed Arrowsmith and introduced him to Kavanagh, hijacking them both to the bar.
“This is Sean Kavanagh. You know Swap!” he said to Arrowsmith who looked puzzled.
“Swap, the Internet company,” Kennedy told him surprised that he did not instantly recognise Kavanagh.
“Oh yes, I sorry. You’ve done rather well on the stock exchange,” he smiled.
“Not too badly,” replied Kavanagh politely, “you’ve not done too badly yourself!”
“I’ve been lucky. Do you know Cuba?”
“I’m sorry to say nothing except for ‘Cuba Libras’,” he tried jokingly.
“Well you have to come by and see our project. It’s a wonderful country, beaches and palm trees….not to mention the cigars and the women,” he smiled knowingly.
Nothing was furthest from Kavanagh’s mind than visiting Cuba. He was not a great traveller, though somehow he had always seen himself in his imagination in Miami as one of the Jet Set, well known to a few selected friends, rubbing shoulders with the famous, enjoying discrete luxury and celebrity. He preferred chic blondes; he was not interested by the dark skinned exotic West Indian women he pictured in Cuba.
Chapter 65
A Happy Interlude
Offshore Islands Page 64
