Cay Clubs' infusion goes bust: Investment firm's millions are now out of the picture.

Byline: Sam Nissen

Oct. 6--A deal to infuse Cay Clubs with investment money has collapsed.

The operator of restaurants, marinas, condos and hotels in the Keys and elsewhere had hoped new investors would bring the company the cash it needs to pay down outstanding debts.

Key Hospitality Acquisition Corp., which would have provided the cash infusion, filed its termination deal with the Securities and Exchange Commission Wednesday and will now dissolve. Key Hospitality was formed specifically to seek out investment opportunities in the then-booming real estate market.

Cay Clubs is not overly concerned, a representative says.

"The market has us worried," ...

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