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Silverpoint Declares Liquidation: Who will be Next?

Welcome to the Friday edition of Inside Timeshare, today we have some breaking news which has just been made public. There has been a huge amount of speculation regarding the Silverpoint, most of these rumours have claimed that Silverpoint has already been placed into liquidation, that is not actually the case. The process is more complicated than simply “going into liquidation” as we will try to explain.

On 15 January 2020, Silverpoint presented to the Mercantile Court a declaration of insolvency & provisional liquidation (Concurso de Acreedores). This does not actually mean they have declared bankruptcy. It is a legal process in Spain which can be invoked by the company voluntary or invoked by its creditors. It is applied when the company is considered to have more creditors than it does assets.

This move is something that Inside Timeshare and others including Canarian Legal Alliance have been expecting for some time. Over the past few years, Silverpoint has been monitored very closely with the movement of funds between various accounts at the forefront.

This transfer of funds and assets was a blatant move to hide them from the authorities to avoid payment, this has already resulted in an investigation initiated by the State Attorney. (See links for the report in El Diario at the end).

The first part of this process is for the Mercantile Court to appoint an external (independent) administrator who is then obliged to inform all creditors of the current situation. The administrator will also have to produce a full and exhaustive report on Silverpoint’s financial operation over the past years.

If the administrator discovers any serious irregularities not only with the liquidation but the actual running of the company, they can, in essence, classify the liquidation and company administrator guilty. This means that the administrator, which in the case of Silverpoint is Mark Cushway, may be personally responsible with his own assets, he may even face a custodial sentence.

Mark Cushway: Could find himself liable.

At this point Inside Timeshare must point out that Mark Cushway was also CEO of Resort Properties before it became Silverpoint so he must have known all about how the company was operated. He was also a director of the RDO (Resorts Development Organisation) the so-called industry trade body. Silverpoint was also one of the largest contributors to RDO funds until they resigned their membership.

The purpose of the Concurso de Acreedores is not to close the company down, it is to attempt to pay all creditors so as to clear the financial situation of the company and if possible overturn a complicated situation preparing the company for future business. Preventing bankruptcy is a priority of this procedure. However, if the declarations being presented are found to be a fraudulent application for insolvency, then this opens up a very nasty can of worms for the company administrators.

As our title suggests, could other timeshare companies be contemplating the same procedure?

Inside Timeshare has already published the fact that the Provincial State Prosecutor in Gran Canaria is already taking a keen interest in the timeshare resort of Anfi. This again stems from the fact that Anfi is transferring assets and funds to other various companies in an attempt to delay or even avoid paying what the courts have ordered. Again this could lead to criminal prosecutions and include jail time for the administrators of the companies involved.

https://insidetimeshare.com/anfi-hits-spanish-television-news/

The question now which will be on the minds of all those with cases waiting for court hearings and those contemplating taking out litigation against Silverpoint is where does this leave them?

From what we have been told our understanding is that it will not have that much of an effect, the cases will instead of being placed with the Civil Court using timeshare laws, will be transferred to the Mercantile Courts. This means that the clients will then be classified as creditors and will then have priority in the eyes of the appointed administrator.

Inside Timeshare advises all those with cases pending to contact their lawyers for more detailed clarification as to their own personal circumstances. For those who are clients of Canarian Legal Alliance, they have also published today this news on their website. This report goes into a lot more depth than we are able to here.

If you have not already filed a claim to have your contract declared null and void with the return of your full purchase price and would like to know how this latest news affects you, then please use our contact page and we will get back to you.

Our final word of warning is now this news has broken, please beware that there will be many “bogus” claims companies and law firms who will use this to their own advantage in order to scare people into paying for “legal services” as a matter of urgency. If you receive any calls to this effect then contact Inside Timeshare and we will help you sort out the genuine from the scams.

Have a great weekend and join us again next week for more news and information on the murky world of timeshare.

El Diario Article

https://www.eldiario.es/canariasahora/tenerifeahora/tribunales/Fiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario English

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=en&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Danish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=da&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario German

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=de&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Finnish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=fi&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Norwegian

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=no&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Swedish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=sv&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

Translations of this article

Danish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=da&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Finnish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=fi&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

German

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=de&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Norwegian

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=no&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Swedish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=sv&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Marriott Contracts Circumvent Spanish Laws

Welcome to the end of another week, today Inside Timeshare reports on how clients purchasing Marriott timeshares in Europe have been duped and how Marriott has circumvented the strict Spanish laws on the sale of timeshare. This has recently come to light as many clients have contacted Inside Timeshare to see if they have a case in the Spanish Courts.

As we know any timeshare purchased in Spain or any of her territories are subject to the laws of Spain, a very disturbing fact has now emerged. It involves the sales of timeshare at the Son Antem Resort in Mallorca.

From the many reader’s enquiries, we focus on just one, it begins in summer of 2007 when our reader was on holiday in Mallorca and was “invited” to attend a presentation on the Marriott Vacation Club at Son Antem. He attended the presentation and was duly impressed with the standard of the resort and the “benefits” of owning a timeshare membership with Marriott.

Our reader eventually agreed to purchase a membership to MVC believing that his home resort was going to be Son Antem. This belief was reinforced by the salesperson conducting the presentation and eventually by the manager when they decided to purchase.

Son Antem Resort Mallorca

When they first began their membership everything appeared to be going well, they didn’t have any problems with booking their holidays and do admit they were very impressed with the standards. But over the years things began to go wrong, maintenance fees began to rise and they now found they were having a great deal of difficulty in making any reservations for the times and resort they wanted. The excuse, as usual, was “no availability”.

Our reader had heard about other owners taking their timeshare companies to court and having their contracts declared null & void with the return of all their money. Making his enquiries he found that his membership was contrary to the laws of Spain and it looked as though he had a valid claim. His membership is a points-based system with a contract that runs in perpetuity. This contravenes Law 42/98 which makes points and floating weeks systems illegal and also limits the duration of a contract to a maximum of 50 years.

This particular reader was directed to Inside Timeshare and duly contacted us to see if he had a valid and viable claim. Unfortunately for him, the news was not good.

Emailing copies of his contract and maintenance bills Inside Timeshare found that his contract was not covered by Spanish law. All the paperwork was processed at Marriott in the USA and shows no Spanish entity. All the documents were stamped by a US notary and the deposit and payments were made through the US in dollars.

His annual maintenance bill was sent from the US and paid directly to Marriott in the US. Now we do know that many timeshares in Spain were sold with the timeshare companies using UK or BVI Limited entities. But the courts have ruled that as the timeshare was purchased in Spain and are based in Spain then Spanish law has jurisdiction and this was just an attempt to get around the law.

But this was not all, our reader actually believed (as he was told this by the sales department) that his home resort was Son Antem in Mallorca, but as Inside Timeshare pointed out all his paperwork shows that his purchase was with Marriott Vacation Club International with his home resort listed as The Manor at Ford’s Colony in Virginia.

The Manor at Ford’s Colony

Needless to say, he was very taken aback at this news, it also appears to explain why he was having difficulty in making his reservations at Son Antem.

This now leaves this particular client without a legal leg to stand on, his only option now is to relinquish and lose over $18,000 for a timeshare that has become a burden and is virtually unusable.

We do know that when on a presentation and then deciding to purchase, clients have very little time to fully read and comprehend the paperwork and contracts. It is also a fact that very few will ever read them in full even after returning home from their vacation, as with this particular reader it is not until problems arise and they seek advice that they found out they do not own what they thought. Had he known that his timeshare home resort was in the US and not at Son Antem, Mallorca, he would not have purchased it.

This story does show the need to go through documents thoroughly and to do so within the 14 days cooling-off period. If you find during this time that you have purchased something that you were not aware of then at least you will have the legal right to cancel.

Once again we see the timeshare industry finding ways to flout the laws of the countries that they are operating in, leaving purchasers with no legal rights and recourse.

If you own any timeshare interest with Marriott it is important that you check your documents thoroughly, if you are not sure what to look for then please use our contact page and Inside Timeshare will help you check.

That is all for this week, we wish you all a very good weekend and please join us again next week for more on the murky world of timeshare.

More News on the Latest Scams

Welcome to the new Friday page which now replaces our old Letter from America which was supplied by Irene Parker. We will say that we are very sorry to see this slot go as it provided a great link between owners of timeshare on the two continents, unfortunately, Irene no longer has the time to work on her articles for Inside Timeshare due to her commitment with the new organisation Tarda which we urge all US owners to join. You can find more information on the following link.

https://tarda.org/

Over the past few weeks, we have been highlighting the link between Solutions SL and CUC Abogados, today we publish some more interesting information sent in by one of our readers who has been contacted by this scam outfit. Once again this reader decided to do their homework and due diligence before parting with their hard-earned cash.

They received the following email which explains that they have been awarded 32,000€ which just happens to be the same figure for every “client” who has been contacted by them. This email has been sent from this email address [email protected] which we know has been used for quite a few years.

Dear Sir(s).      15th October 2019

As you are aware the recent hearing went ahead as planned on Wednesday 25th September.

Although you chose not to appoint a collection agency to represent you, it would seem that a favourable outcome was also reached in your case, however payment of subordinate claims is postponed until preferential and unsecured claims have been paid out first.

The original award of 32,000 Euros per claimant still stands.

A managed payment plan of 12 – 32 months has been set by the court, meaning that the defendants must compensate all members of the action group within this time period.

The plan includes the following stipulations:

  • All compensation must be paid out no later than 32 months from the date of the sentencing.
  • The court is to review the progress of the pay-outs every 3 months, with the defendants and their representatives appearing in person to testify to the progress made thus far.
  • Failure to adhere to the payment plan or any attempts to stall it will be met with a strict prison sentence.
  • Due to the total amount of compensation owed exceeding the amount of 1 million Euros, a prison term of no less than 7 years has been set.
  • Should this prison sentence be enforced, all remaining assets will be distributed evenly by the court at that point.

To clarify, you may be paid out at any point during the set time frame of 12 – 32 months.

It is important to note that you will have to submit a request to the court to query the state of your pay-out. This can be done in person every 3 months, following the courts review of the proceedings.

To accomplish the above you may wish to employ the services of a para-legal for a nominal fee, who can attend the courts on your behalf a maximum of 4 times per year to submit the appropriate requests.

Should you require any assistance in doing so we would be happy to facilitate this for you. Please feel free to contact me to discuss this option further and request a quote.

Kind regards,

Julia García

Solutions.

Now we do actually wonder how the defendants will be able to appear in court every 3 months as the companies involved in this “case” Incentive Leisure Group, Designer Way Vacation Club and Personal Travel Group were all owned by the late Gary Peter Lee. So unless he has mastered the art of resurrection who will be appearing?

Now the cost for this service is £425.18 and has to be paid into the account of a named person a P Hall and not a company account, that in itself should always set the alarm bells ringing. If this company and service were legitimate why is the payment not made to a company account? (see PDF for payment details)

We now move to another new scam that our readers have alerted us to, this time it appears to be based on the Costa del Sol and the “company” is called Sanchez Services. The address they give on the email is:

4-7 Calle Cononel Ripollet 296405 Malaga

They also give details that they are a registered company with the CIF Number 8064689968

Now the address is fake, there is a street in Fuengirola called Calle Coronel Ripollet but the postcode is also wrong it should be 29640. The CIF Number is also fake, all CIF number begins with a letter consists of 8 figures For example B67313000.

It begins: My name is James D Souza from the compliance dept of Sanchez Services. He goes on to explain that to proceed with the claim the amount the client will receive is £5,950, this will be paid by cheque and delivered by courier or if they prefer it can be paid directly into a bank account, but obviously Sanches Services will need the client’s bank details.

Now obviously there is going to be a fee involved to pursue this “claim” but their advisors are not allowed to take the payment details over the phone. So they ask the client to “kindly” make the payment online or by visiting the bank. They then give the details of the “Escrow Account” for the payment of £595.

The account details are:

Pay: Peter Smith

Account Number: 01706758

Sort Code: 24-63-08

Reference: Name of the client

“IMPORTANT PLEASE CHECK THESE DETAILS WITH ADMIN DEPT BEFORE PAYING”

Now once again this account is in the name of a named individual although we must admit that Peter Smith is a very strange name to use and unfortunately we have been unable to identify which bank it is. We do know that the sort code does not appear to belong to a UK bank as we have checked using the sort code checker but have not been able to identify if it is a Spanish bank. So we do have to ask why do the details need to be checked with admin before making a payment?

The email also goes on to say that the £595 will be held in the escrow account for 10 days if the client has not received their £5,950 within the 10 days the money will be returned. Then once the client has received the payment they must sign and return the attached forms so that the £595 can be paid to Sanchez.

Sound all very good and appears to be safe!

Well, we think not.

The email is then signed off in the following manner:

Have a wonderful day, Best Regards William D’Souza

I do think he may just have forgotten that his name, to begin with, was James!

Now if these two examples don’t warn you to be on your guard then I’m afraid you do deserve to lose your money.

As we always warn our readers

DO YOUR HOMEWORK BEFORE PAYING ANY COMPANY MONEY NO MATTER HOW MUCH IT IS OR HOW MUCH THEY HAVE PROMISED YOU WILL RECEIVE!