The Waterfront Enterprise Board has terminated the deal that made the firm the preferred developers for the new Waterfront finance district after they failed to meet a second deadline to produce a £95m bond.
The termination of the heads of terms agreement means that WEB could now open talks with other developers to build the Esplanade Square development that the States approved last summer.
However, Harcourt have also been given a final deadline of 4 September to come up with the bond to prove that they have enough money to carry out the scheme.
Treasury Minister Philip Ozouf told the States yesterday afternoon that although Harcourt came up with two potential backers, they did not meet the terms that WEB had laid down. He added that the developers claimed that no major lending bank could meet the criteria WEB were demanding.
