Browse Tag

Alvarez and Marsal

Updates: Fake Liquidation of Club la Costa & The Club Paradiso Liquidation

Yesterday Inside Timeshare published the story being put around by some “cold calling claims & exit” companies that Club la Costa is going into liquidation tomorrow Friday 16 October 2020. Today we have some new information on that piece of fake news which also included the fake news that Marriott was also going into liquidation. We also bring you the latest news on the liquidation of Club Paradiso Ltd, this is the club based at the Paramount in Tenerife and is part of the Limora Group. The club memberships were sold by non-other than our old friend’s Silverpoint who are themselves in the process of liquidation.

First, we take a look at the “fake” news that Club la Costa is going into liquidation this Friday, as we published yesterday this is a total fabrication of the truth, it is a ploy by some unscrupulous companies to scare and take advantage of desperate owners/members. 

According to an email sent by CLC World Chairman, Roy Peires, to members yesterday 14 October, the full story is given.

Basically, due to the Covid19 pandemic, sales of memberships at Club la Costa have been seriously affected, they scaled down the number of staff and many were placed on the furlough scheme.

Well, it is not surprising that sales have been affected as there has really been nobody travelling and that means no one visiting CLC or being taken to presentations. Also, it is not really conducive to conduct sales presentations with the regulations on social distancing and the wearing of masks.

What the Chairman Roy Peires has informed members in his email is that as of Friday 16 October 2020, all sales have been suspended for the foreseeable future. This also means that many staff members will now be out of work.

So as we explained yesterday, this claim by these “cold callers” is a tactic to scare you into paying them to take up your case.

Club la Costa is not going into liquidation.

PDF of the full email from Chairman Roy Peires.

We now move to the letter being received by members of Club Paradiso, which is, in fact, going into liquidation, so that is not a rumour.

Club Pardiso

The letter is from R & H Restructuring based in the British Virgin Islands, they are along with Alvarez and Marsal, also based in the BVI, are Joint Liquidators.

They have appointed Owen Walker of R&H and Barry Lynch of Alvarez and Marsal as the Joint Administrators (JL’s). According to the letter Alex Lawson (Alvarez and Marsal) who was appointed sole administrator of Club Paradiso Ltd has “ceased to have any powers (other than those required or permitted as a matter of British Virgin Islands (BVI) law)”.

Contained in the letter are several options open to members, one is to relinquish their membership, which appears to be free of any charge.

The second option is to take up an offer which the JL’s “consider sufficiently attractive” to members. This offer is from Regency Hotels, who operate The Regency Club Tenerife and The Regency Country Club, Tenerife.

Obviously, this offer has come as Club Paradiso Ltd have not had any luck in finding a third party to continue running the club for the members.

It should also be pointed out at this stage the problem with accepting this offer. If members have filed cases against Silverpoint for the sale of the Club Paradiso membership, with those cases pending a hearing, cancelling the contract will have serious consequences on their cases.

Once the contract has been cancelled, the courts will have no other option than to reject any case where the contract is no longer in existence. So, if you do sign up for the offer and cancel or just purely cancel you will have wasted all your money on the legal fees as there is no longer a valid case.

The last option is making a claim via the JL’s, they invite members to make a claim directly with them as liquidators and even provide a claim form.

At this point Inside Timeshare now has the alarm bells ringing, we envisage within the next couple of weeks a resurgence of “claims & exit” companies getting in on the act and cold calling members with offers of doing the exit or claim for them. In the light of the other articles published on fake news we just wonder what scare tactics they will use to get your money.

The advice from all the lawyers Inside Timeshare has spoken to with cases either in court or pending is simple, do no exit, do not take up the Regency offer and if you decide to attempt a claim directly to the JL’s, find your own solicitor with experience in this field and also having jurisdiction in the BVI to do the work for you or at least give you sound legal advice.

PDF of the Full Letter from R&H Restructuring.

If you have any questions or views on these subjects or any other article, please use our contact page and Inside Timeshare will get back to you.

Latest Court News & Update on J Foster Associates

Yesterday we published part 2 of our Timeshare Contracts: Held to Ransom articles, we began last week with Belton Woods Lodges and yesterday we looked at Diamonds “exit” policy, our next article will be looking at Club la Costa. Today however we look at another two cases to come out of the courts in Gran Canaria, these cases involve Holiday Club and Airtours. We also have an update on the new “claims & exit” company J Foster Associates and their rather wild and exaggerated claims. It certainly looks like desperation.

Earlier in the year a German client of Canarian Legal Alliance won his case at the Court of First Instance Number 4 of San Bartelomé de Tirajana against Holiday Club. In July the Court received the payment from Holiday Club for the amount the court awarded to the client.

The client has now received into his own bank account the 25,407€, so not only has the contract been declared null and void, but the client also has received his original purchase price plus double the deposit paid. As far as this particular client is concerned his journey is over and he is totally timeshare free.

So it is congratulations to the client and especially to the Lawyer Oscar Salvador Santana Gonzalez who prepared and conducted the case and also to Jasmin Erhard the Claims Consultant who helped this client through the case.

The next case is against Airtours and this is a very surprising case, again brought on behalf of a Norwegian client by Canarian Legal alliance.

What makes this case different from all the others is the time it has taken, CLA filed the case on 9 July 2020, within 2 months the case was heard with the sentence just being issued. It transpires that the Judge sitting at the Court of First Instance number 13 of Las Palmas decided that there was no need for a full trial and proceeded to deal with the case at the pre-trial stage.

This does appear to becoming a very common occurrence, with more and more judges deciding that full trials are no longer necessary. This can only be good news for clients with cases pending, let us just hope that more and more judges do the same.

In this case, the client has been awarded over 63,000€ plus legal interest and their contract has been declared null and void.

The lawyer representing the clients was Aroa Farray Martin with Claims Consultant Lotta Nielsen assisting the client.

We now move to an update on the new “claims & exit” company J Foster Associates, we highlighted this company back in September (see link below).

https://insidetimeshare.com/end-the-week-new-cold-caller/

As we stated in our previous article the company website was only registered in August, so it is only just 2 months old. We have also failed to find any company registration either in the UK or in Spain. We do know they are claiming to be operating out of Mallorca, one of the numbers is certainly +34 971 228 089 is for La Palma de Mallorca, but they also have this number +34 922 099 170 which is for Santa Cruz de Tenerife.

We have also been informed that they appear to be working with yet another company that we have highlighted in the past Claims Solutions Group of Aberfeldy along with a couple of others who we believe are Fullbrook Associates of Stirling and Meridian Associates of Tenerife.

We also know that these three companies are also working with another company we have highlighted, Carl James Associates, the articles below explain about them and it does not look good.

https://insidetimeshare.com/end-the-week-6/

https://insidetimeshare.com/end-the-week-7/

https://insidetimeshare.com/one-sided-press-reports/

Now, J Foster Associates who have been actively cold calling mainly Silverpoint clients appear to have come up with a new story which they are using to create urgency for the clients to sign up with them. As one reader put it, “it was just like a timeshare presentation, expect you to sign after a 3-hour Zoom meeting”. Talk about pressure tactics.

Apparently, the caller from J Foster Associates tells the “potential” client (I prefer victim), that 5 of the Silverpoint properties are being sold to the Ona Group and here is the most laughable part, “all proceeds will be going to the Bob Trotta Foundation/Excel Hotels to discharge any debts and claims in Tenerife”.

Apparently, this is all agreed with Alvarez and Marsal who have taken over as administrators of Silverpoint, (this is not the same as the court-appointed administrator dealing with the liquidation). It has also been stated by JFA that all this has the blessings of the Spanish authorities and they are offering “a safety net underwriting any deficit”.

What a joke, the Spanish authorities are going to cover any deficit for debts and claims, they haven’t even got enough money to keep up the furlough payments let alone “bailout” a fraudulent timeshare company.

What we do know is that Ona Group is not purchasing the properties, they are a resort management company and it is they who may, just may be taking over the day to day management role from Excel.

In another attempt to coerce potential clients (victims) with the need for urgency, they are also using Brexit as a tool. According to J Foster Associates, there is a deadline of 31 December 2020 to register the claim with the Spanish courts as once the UK leaves the EU no UK clients will be able to take a case to the Spanish courts.

This is a good pitch for urgency but it is a total fabrication of the truth, it makes no difference if the UK is in the EU or not, they still have the protection of Spanish Timeshare law. Well, Inside Timeshare knows for a fact that there are Russian clients with cases in the Spanish courts and they are not part of the EU.

Once again, this is a stark reminder that not all you are told by these “cold calling claims & exit” companies is the truth, that you should always do your due diligence first.

REMEMBER, DO YOUR HOMEWORK!

If you have received any calls from this company or any other with these types of claims, please use our contact page and Inside Timeshare will get back to you.

End the Week: Another New Claims Company and Court News

Here we are again, the end of another week, we began with an update on JSD Group Ltd and the number of emails received by Inside Timeshare from owners who have been called by them regarding timeshare claims. These same readers have now been contacted by JSD again, this time it is for the solar panels they had fitted. We also published some of the latest news from the courts in which our old friends Anfi lost yet again at the pre-trial stage with the judge deciding there was no need for the case to go to a full trial. We then gave an update on Club Paradiso, it appears that Alvarez and Marsal, the administrators of Club Paradiso which as we know is in liquidation, have been unable to find a third party willing to take over the management of the Club. Not good news for members. There was also an article on a very dodgy “exit” scheme put into place by Belton Woods Lodges Ltd. Today we end with the latest new “claims” company to appear and news from the courts in Tenerife in which Diamond Resorts lose another case.

It has only been a couple of months since Inside Timeshare warned of the proliferation of new “claims & exit” companies, today we publish details of the latest to emerge, Themis Resolutions.

We can’t say Ltd or SL company as there are no company details on their website, in fact when searching for this company, absolutely nothing comes up, it is if they don’t actually exist!

The website

https://themisresolution.com/

It was only registered on 16 September 2020 and is set to expire on 16 September 2021, yet again a “claims & exit” company that has just emerged with no company details and registering the website for only 1 year. The registrant is hidden so there is no indication who is behind or who owns it. Not very confidence building so far!

On the contact page there is the usual form to fill in and submit, a telephone number: 01935 548 026, the STD code is for Yeovil in Somerset and the email address:

[email protected]

Considering the website is very basic and obviously lacking in any genuine company information, it is actually surprisingly well written. The information is relatively accurate and makes references to the various laws and EU Directives that have been put in place. Well, I should think so, Much of what has been written has actually been pilfered from Inside Timeshare.

Our reader after being called was sent an email signed by Dawn Knott from Customer Care, confirming what they had been told during the call, after the “thank you for speaking with us today” greeting it goes straight to “here are some articles to read” and then a link to one of our articles on the liquidation of Silverpoint.

The rest of the email is again taken from the article, although slightly rewritten, it goes on to explain the situation with the bankruptcy of Silverpoint, which then leads to the paragraph about claims in the “Commercial Court” and Civil Courts.

The last part of the email goes on about making a claim against a credit card company or the bank using Section 75 of the Credit Consumer Act 1974. Now considering they show no association with any law firm or explain if they will actually employ a lawyer to take a case to the Spanish courts, it certainly looks like they will be using the usual scenario.

As we already know, the majority of these “claims & exit” companies will state that the contract needs to be terminated first and then they will do the claim. For this, they will charge a hefty sum to do the “exit” and then they will make a claim. Well, first we know that once a contract is cancelled, then no claim can be taken to court, this then leaves section 75.

At present, it is not actually clear if Themis Resolutions is actually going to carry out these claims or if the website itself is just a “lead generator” where they “sell” clients to other companies, if so which ones? Whichever they are, it is quite clear that due to the severe lack of transparency, this is one “cold caller” and website you should be very wary of.

We now finish this week with news from the Court of First Instance No 3 of Granadilla de Abona, Tenerife.

In this case, the defendant was Diamond Resorts Tenerife Sales SL, who has now been ordered to repay a now-former member over 49,000€ plus legal interest. The contract again was declared null and void.

It was the usual infringement of the law which made this contract illegal on at least three counts, it was in perpetuity, longer than the 50 years allowed by law. The contract also included a points-based system, which has been deemed illegal on numerous occasions by the Supreme Court. There was also the illegal taking of deposits with the statutory cooling-off period.

The English client was represented by the Lawyer Miguel Angel Melian Santana, with the client being assisted by Claims Consultant Jake Kaiser both of Canarian Legal Alliance.

That is all for this week, if you have received any calls and would like to know if the company is genuine, or if you have any questions or comments on any article published, please use our contact page and Inside Timeshare will get back to you.

Have a great weekend and stay safe.