Groupo Iberostar Pulls Out of Litibu

Litibu is a major development adjacent to the Four Seasons Resort in Punta de Mita.

Litibu was being developed as a stand alone resort with at least three hotels, two condo developments, townhouse condos and golf courses. The Litibu project was a joint venture involving Mexico's tourism and land development crown corporation, Fonatur, and one of the world's largest resort developers, Group Iberostar, among others.

As a result of poor sales and slow cash flow, Groupo Iberostar is walking away from the Litibu project. We do not have further details except to say the Iberostar was not able to find a buyer for their share in this partially completed project and is unwilling to commit any further money to the development.

There are condo projects on the site including La Tranquila. HSC Financial attempted a site visit at La Tranquila in March of 2008 to confirm construction progress and we were denied entry to the grounds without attending a sales presentation. At the time, we had very serious concerns about claims made regarding sales-to-date and construction progress.

We are unable to report on the status of sales contracts for Litibu sub-projects.

Any developments to any projects related to Litibu should have no further funds advanced. If any cash has been advanced, it is probably lost, however we recommend that you hire a local solicitor in an attempt to recover money or to at least document losses.