The Vivot Group of Companies, a prominent full-service commercial construction firm in the U.S. Virgin Islands, has filed for bankruptcy, according to court documents obtained by the Consortium.

Jean Patrick Vivot, president of the conglomerate, is requesting joint administration for the bankruptcies filed individually by each of the ten companies in the group. These companies include Vivot Equipment Corporation, Eleven Construction, PSI Tire Supply, Axis Development, TTA Logistics, Valdez Industrial Group, Caribbean Crane & Rigging, Vivot Industries Virgin Islands, Abacus International, and Vivot Equipment. The group collectively owns approximately $64 million worth of equipment, tools, and vehicles, alongside an additional $19 million in real property. However, they owe just over $56 million in secured debt, with the primary creditor being Touchmark National Bank of Georgia, to whom Vivot reportedly owes $31 million. The group also has a reported $13.5 million in unpaid taxes.

Mr. Vivot attributed the financial distress to the 2021 bankruptcy of Limetree Bay Services, which left the Vivot Group with $14.5 million in unpaid receivables. “Limetree’s liquidating bankruptcy, and its subsequent failure to pay the Limetree Receivables in full, caused the Vivot Group to endure significant financial and operational strain,” Mr. Vivot stated in his declaration. He further explained that a consensual out-of-court debt restructuring was deemed unfeasible after discussions with secured lenders.

Compounding the financial woes, Touchmark National Bank filed a lawsuit in early April, seeking to appoint a receiver for the Vivot Group. The lawsuit alleges that Vivot failed to repay debts and improperly reallocated assets designated as loan collateral. Touchmark claims that some equipment used as collateral was leased to third parties without consent, violating loan agreements.

The lawsuit details nine loans taken by Vivot companies between 2016 and 2019, with other group companies guaranteeing the loans and pledging all assets as collateral. Touchmark’s lawsuit reveals that a November 2023 spreadsheet indicated some collateral assets had been moved from St. Croix to other locations, including Puerto Rico and the mainland U.S. This movement and unauthorized leasing of equipment allegedly jeopardize the collateral’s value and hinder the bank’s ability to locate and liquidate it. Additionally, the bank asserts that Vivot violated loan agreements by allowing tax liens on properties used as collateral.

Touchmark has filed 95 complaints against the Vivot Group and Mr. Vivot, seeking a court judgment, the appointment of a receiver, and potential liquidation of collateral if the debtors fail to repay their obligations.

The bankruptcy filing temporarily halts Touchmark’s recovery efforts. Under Chapter 11 bankruptcy, the Vivot Group aims to reorganize its business, repay creditors over time, and continue operations. As “debtors-in-possession,” the group has requested court permission to use available cash for operating expenses.

For now, the Vivot Group is not in immediate danger of ceasing operations, but industry stakeholders are closely monitoring the situation as one of St. Croix’s largest construction service providers navigates its financial challenges.

Residents of St. Croix now have a new option for final arrangements with the opening of Kingshill Funeral Home. Under the leadership of Nikki Brooks, the funeral home, located at 303 Clifton Hill in Kingshill, held an open house recently to introduce its services to the public.

Ms. Brooks, who returned to St. Croix to start this venture, shared her journey, highlighting the challenges she faced, such as a leaking roof and stained tiles. “Coming home was hard because I’m starting over at 52,” she said. Despite these hurdles, she credited determination and faith for her perseverance, stating, “I played that song, ‘The Goodness of God,’ because God didn’t put me in my space to do nothing.”

Kingshill Funeral Home offers a range of funeral packages starting at $2,300, designed to meet the diverse needs of the community. The funeral home aims to provide reliable and affordable services, accommodating individual preferences and financial considerations.

The facility operates Monday through Friday from 8:00 a.m. to 6:00 p.m., Saturdays from 8:00 a.m. to 1:00 p.m., with appointments available on Sundays and 24-hour phone availability for urgent needs.

Ms. Brooks emphasized the importance of personalization in their services. “I believe in celebrating the life of the loved one. That’s why when you walk around here, it’s a blank canvas. What do you desire for your loved one? We created it this way so that every human lived a life,” she explained. The funeral home prides itself on providing a seamless experience for families during the challenging process of arranging a funeral.

In addition to standard services, Kingshill Funeral Home offers bilingual services and materials. “Everything we have in English, we have in Spanish, even to the contract, so the community can read along [with] what everyone is saying,” Ms. Brooks said.

Ms. Brooks also highlighted the ecumenical nature of their offerings, catering to various denominations and spiritual needs. “Some people can have many denominations…some people are more spiritual,” she noted, ensuring that the funeral home can help mourners “create what they need for their loved one to celebrate them.”

Pre-planning funerals is another aspect Ms. Brooks emphasized, comparing it to planning birthdays or trips. She pointed out that pre-planning allows individuals to organize funerals to their preferences, alleviating financial strain and stress for surviving family members.

For more information or to arrange services, interested parties can contact Kingshill Funeral Home at (340) 773-3310 or via email at [email protected]. Ms. Brooks reiterated her belief that Kingshill Funeral Home will offer those struggling through one of life’s most difficult periods ease, comfort, and valuable assistance in making final arrangements for their departed loved ones.

A notable post-pandemic recovery in the cruise sector is providing a positive outlook for the West Indian Company Limited (WICO), as highlighted by Chief Executive Officer Anthony Ottley. During a recent Public Finance Authority (PFA) board meeting, Mr. Ottley presented updates on the company’s projects and strategic plans.

WICO has reported a 20% increase in cruise ship calls from October 1, 2023, to April 30, 2024, compared to the same period last year. “WICO has welcomed 217 cruise ship calls, bringing nearly 729,000 passengers to our shores,” Mr. Ottley stated. An additional 17 port calls are expected by the end of the fiscal year, bringing in over 240,000 more passengers.

For fiscal year 2025, WICO anticipates 289 ship calls with an estimated 1.1 million passengers. “These numbers signify a definitive bounce back from the COVID era and a steady return to pre-pandemic passenger volumes,” Mr. Ottley remarked.

WICO is exploring development opportunities for the Liverpool property, a seven-acre site with potential uses such as resorts, water parks, and marinas. At the Seatrade conference, discussions were held with engineers and planners to refine the development plan. “The ultimate goal is to develop a financially feasible and implementable plan that enhances the cruise passenger experience and generates additional revenue for WICO,” Mr. Ottley explained.

Ongoing construction and maintenance projects aimed at improving the company’s facilities include repairs to the administration building and ancillary structures. “These repairs encompass painting, welding, and replacing air conditioners, metal doors, and windows,” Mr. Ottley noted.

The dredging project for the Charlotte Amalie harbor is progressing, with permits expected soon. “Geotechnical studies and coral relocation will commence once the permit is received, with construction slated to begin by the end of 2024,” Mr. Ottley informed the board.

WICO is also addressing recurring water pipe ruptures by upgrading subsurface infrastructure. The original cast iron pipes, installed in the mid-1900s, have corroded badly, resulting in significant water losses. The upgrade is scheduled for completion in January 2025. “This upgrade is essential to reduce costly water leakages and ensure a reliable water supply for the facility,” Mr. Ottley asserted.

Additionally, WICO has installed new turnstiles as part of the Transportation Worker Identification Credential (TWIC) upgrade and is applying for a grant to enhance its camera system with facial recognition capabilities. “These upgrades are vital for maintaining security and operational efficiency at our facilities,” Mr. Ottley said.

Financially, WICO is in a stable position, with $575,000 in cash and $7.1 million in restricted cash as of December 2023. Operating revenues for fiscal year 2023 were $2.4 million, with operating expenses amounting to $2.3 million. “We are in a solid financial position, and our agreements with major cruise lines like Carnival, Norwegian, and Disney account for approximately 95% of our passenger volume,” Mr. Ottley said.

Mr. Ottley concluded his presentation with an optimistic outlook for WICO’s future, emphasizing ongoing efforts to enhance the cruise passenger experience and strengthen the company’s financial stability.