Today Inside Timeshare has received a copy of an email sent by Kola Advisors and signed by Barry Lynch on behalf of Alex Lawson and Paul Pretlove of Alvarez and Marsal who are the appointed as Joint Provisional Liquidators of EOHL. This letter was apparently sent to “Investors” of the Excel Lodgings Participation Program or ELPP. In his letter, Barry Lynch explains what is happening and it does not look as though this is going to be a quick or simple process.
Alex Lawson and Paul Pretlove
Lynch begins first explains that the company EOHL (Excel Overseas Holdings Ltd) was placed into provisional liquidation on 26 March 2019, this a was put before the High Court of Justice of the British Virgin Islands (Commercial Division). He explains that the application has been brought by a company called Landcastle Holdings Ltd, which as it turns out is a majority shareholder of EOHL.
Lynch then report on the hearing of 13 May 2018 before the BVI Court in order to bring the application to a final hearing. At this hearing, Landcastle Holdings argued that the application should be dealt with in the same way as other similar applications. They were seeking the appointment of liquidators for the benefit of creditors and hoped that the final hearing would be held within 6 to 8 weeks.
This was opposed by another company called Landcastle Capital Ltd who are registered as minority shareholders of EOHL.
Although these two companies have similar names they are in fact separate entities independent of each other and separately owned and managed.
Landcastle Capital is owned by a gentleman in New York who is attempting to block the liquidations.Landcastle Holdings working on information they have available are of the view that this individual is primarily responsible for the issues facing EOHL. This also includes all the problems now facing those “Investors” of the ELPP.
So what do we deduce from this?
It looks like that this is a dispute between the shareholders of EHOL, this means that both parties should be required to lodge their pleadings in full detail on their respective positions of the dispute.
The BVI Court ordered that pleading did need to be filed in the application so they may determine the claim.
Landcastle Holdings filed and served their statement of the claim on 21 June 2019, Landcastle Capitol has until 19 July (tomorrow) to file and serve their defence.
With the BVI Court’s decision the application will not be a speedy one as was initially hoped, it is believed that the application is not going to be heard until late 2020 or even early in 2021.
The Joint Provisional Liquidators have now taken control of companies which are below EOHL within the corporate group, they are believed to be taking steps to protect and maintain the value of all the assets. Lynch states that the JPL’s “are working diligently to ensure the best possible outcome for EOHL creditors, principally being the ELPP Investment investors”.
Apparently, Landcastle Holdings is continuing to seek the appointment of liquidators to EOHL.
If any of the assets of EHOL be realised then any money collected from those assets will be held in the estate of EHOL purely for the benefit of creditors and to cover any ongoing costs. This will also include costs for the provisional liquidation and any future liquidation. It is not yet know how the distribution to creditors will pan out.
Lynch ends his letter with “the JPL’s will continue to take all necessary steps to protect and maintain the value of EHOL assets. They will also continue to provide creditors with updates on any relevant developments”.
This along with all the other articles Inside Timeshare has published on the tangled web of companies of which Silverpoint is part of, is going to be a very long-running and complicated story. It is one that Inside Timeshare will be following very very closely, so watch this space.