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Barry Lynch

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.

Start the Week: Playing Catchup

Firstly apologies for the lack of articles over the past couple of weeks, this has been due to medical issues and the strong medication that has been required. Today we give you a quick update on the liquidations of Azure in Malta, we also highlight yet another new “fake” law firm which is part of the fakes known as the Litigious Abogados family.

As we know several of the Azure companies in Malta are going into liquidation, the appointed Joint Liquidators (JL’s) are Wesley Edwards and Barry Lynch, both from the company CVR Global (B.V.I.) Limited. This company is registered in the Territory of the British Virgin Islands (No. 1875694). Registered office: Jayla Place, 2nd Floor, PO Box 216 Road Town Tortola British Virgin Islands VG1110.

They are in the process of informing members that they are in negotiations with several unrelated companies to take over the management of the “clubs”. This is to ensure that members do not lose what they have purchased.

We also know that the shareholders of the resorts are also involved in this process and they have already stated that they will do their utmost to protect members.

Now, this is not the story that many of our readers are being told by the various cold calling companies contacting them. Once again the use of scare tactics claiming that if they (the member) does not act now by cancelling their membership and making a “claim” for “compensation” they will lose everything.

Below is a PDF copy of the letter being sent out by the JL’s, as you can see they are being very open about this matter and are keeping members informed as and when further information is available.

As usual, the news of a company going into liquidation sparks a frenzy of cold calls by companies jumping on the bandwagon with a lot of misinformation, so please beware!

We now move to the latest incarnation of the Litigious Abogados family, Torcaz Abogados, they have the website:

https://torcaz-abogados.com/

Which is almost identical to all the previous websites, just a few minor changes. The website was registered on 11 March 2020 and is due to expire on 11 March 2021, so only registered for 1 year. This does seem very strange considering that they claim to have been established as a law firm on 1 September 1994. The CIF number they show A43663289 is also as all the previous ones a fake.

The founder is named as Fernando Olawza Garcia, there is only one problem: the photograph of Fernando shown on the website is actually Judge Dana Makoto Sabraw, for the United States District Court for the Southern District of California.

https://en.wikipedia.org/wiki/Dana_Sabraw

So another one to add to the list of identified photographs stolen from the web, these have included the late 39th President of Venezuela and the Azerbaijan Ambassador to Argentina. We have yet to identify the other “lawyers” pictured, but no doubt they will be found soon.

These are the lawyers shown on the website:

The Modus Operandi has changed very little, they are still using fake court documents and have used official logos on their letters. The main difference is what they are initially charging to get your case registered, obviously, there will be more charges as the case goes on.

Payment is required by bank transfer and according to the letterhead the payment is made to Armando Orebandel Jurados & Notarios, but as you can see the account is not in the name of the company but to a named individual, Paulo Rosso Vearns. This should set all your alarm bells ringing.

If you have been contacted by any company regarding your timeshare or with the great news that you have been awarded money held by the courts, please use our contact page and we will get back to you. Do not pay them anything until you have done your homework,

Once again we apologise to all our readers for our absence and we will be getting back to normal with more news and information on the murky world of timeshare.

End the Week: More News on Azure

Here we are at the end of another week and what a week it has been, the breaking news that Azure Services Ltd has filed for liquidation, now we have news that two more companies within the Limora Group are being liquidated by Alvarez and Marsal. We have also been receiving emails from concerned members about the phone calls they are already receiving from some very dubious companies regarding the liquidations. Yes, it has already started, the “scamming vultures” have seized the opportunity to use “scare tactics” so you part with your money. Inside Timeshare urges you to not believe what you are being told, it is early days, no one knows what is going to happen and these unscrupulous callers will play on your concerns, after all, they are professional “scammers”.

The latest news now is that Azure Resorts Limited has also filed for liquidation on 28 April 2020, the “Joint Liquidators” are:

Mr. Barry Lynch of Alvarez & Marsal Cayman Islands Limited, PO Box 2507, 2nd Floor Flagship Building, 70 Harbour Drive, George Town, Grand Cayman, Cayman Islands, KY1-1104

Mr. Wesley Edwards of CVR Global (BVI) Limited, First Floor Folio Building, PO Box 2295, Road Town, Tortola, British Virgin Islands, VG1110

Azure Resorts Ltd is the management company for the following “clubs”:

Island Residence Club, The Heavenly Collection (including Sands Towers) and Azure Ultra.

The letter signed by the joint liquidators (which can be viewed using the PDF link below) explain to members of what is happening with regards to their memberships,

“The JLs appreciate that members will be concerned as to the future of the Clubs and wish to advise that the Company’s liquidation does not necessitate their closure, nor does it prejudice the rights of Club members.”

The letter also goes on to state that “discussions” are and have been taking place with an unconnected third party to take over the management of the clubs.

The next paragraph clearly states the aim of the Joint liquidators is to ensure that the members are protected. 

“Please be advised that the Company’s liquidation does not affect your rights as a member of the Clubs and your entitlement to use the timeshare weeks purchased. Following the appointment of a new club manager, members will continue to be able to utilise their entitlements at the Golden Sands Resort in accordance with the rules and constitutions of the Clubs. Please be further advised that, should an agreement be reached to transfer the club manager role to a third party, the JLs envisage that the transition for members should be seamless and therefore cause minimal disruption to the operation of the Clubs. It is noted that the JLs anticipate that members will be able to use their entitlements following the reopening of the Hotel and travel restrictions to Malta being lifted.”

In a similar letter to members at Golden Sands Resort by the Corinthia Group, that

“The shareholders have also reaffirmed that the Golden Sands Resort will fully honour all timeshare commitments arising from obligations entered into with existing members.”

In other words, another company will be appointed to manage the “timeshare” interests of the resort and the members. This has happened with those resorts in Tenerife managed by Excel Hotels and Resorts, that has now passed to the Ona Group.

See the full letter in the PDF below.

It has also been announced on the AzureX website that Azure XP Limited have also filed for liquidation with the same joint liquidators as for Azure Resorts.

On this announcement, they include a link to the CVR Global website:

https://cvr.global/azure/

This is the news as it stands now, as and when further information becomes available it will be published here on Inside Timeshare.

As we stated in our opening paragraph, no one knows what is happening or going to happen, it will all be pure speculation. Do not be taken in by the “scare stories” that you will be told by the cold callers all trying to get in on the act, just remember, THEY ARE JUST AFTER YOUR MONEY!

Have a good weekend and join us again next week.

Just after publishing another reader has sent this FAQ published on the Members Blog.

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