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Club Paradiso Ltd

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 News: The Paramount – Club Paradiso

Over the past few weeks Inside Timeshare has been running a series of articles regarding the troubles around Silverpoint and associated companies. We began with a series of articles in six parts on the truth behind Silverpoint this can be found in the link below. As a result, Inside Timeshare has been receiving many enquiries on this but also many many more from members who have been told their bookings will not be honoured.

https://insidetimeshare.com/?s=exclusive+breaking+news

Our readers have also been sending letters to Inside Timeshare from Excel Hotels & Resorts SA and also from Club Paradiso Ltd outlining their reasons behind all of this. We begin first with the letter one reader was given by Excel while actually on holiday.

In this letter which can be read in full on the link below, explains that on 13 September 2018, Excel Hotels & Resorts SA, had terminated the product marketing agreement with Signallia Marketing Distribution SA, formerly known as Silverpoint Vacation Solutions SA.

The result is that any member who has booked through Signallia to stay at any of the resorts managed by Excel has after that date will not be honoured. They do however say that they did honour some of the bookings to “prevent disruption” being caused to members.

It also transpires that Signallia continued to market the products even after the termination of the agreement without the consent of Excel. Therefore none of these reservations will be honoured at any of the resorts.

The letter also goes on to say that Excel never received any payments collected by Excel and that they are not liable for any sums paid. Now considering that all these companies are interlinked via the parent company which was owned by the late Bob Trotta does make this look very suspicious indeed.

The letter which is unsigned but carries the Excel stamp ends with Excel informing clients that they are informing the relevant police authority, in other words, they are denouncing one of their own companies!

PDF of the full letter

Several other readers have also sent us a letter amounting to 4 pages, with the last 2 being Frequently Asked Questions, from Club Paradiso Ltd another British Virgin Islands company and signed by Alex Lawson who we know is working on behalf of the Trotta family with his company Alvarez & Marsal to liquidate assets to save the Trotta family fortune. (See the link at the start)

The letter dated 12 July 2019 begins with advising members that on 14 May 2019 he was appointed as a director of the company, with the former sole director resigning with effect from 30 May 2019. This now makes Lawson the sole director of Club Paradiso Ltd.

He explains that since his appointment it has become apparent that Club Paradiso is facing a “number of significant issues”, we know and so do all the members who are contacting Inside Timeshare!

He goes on to complain that not all the company’s books, records and documents have been made available to him, it appears that he is unable to do his job because of this. Now the question is what actually is his job?

We know he has been appointed “administrator” of several other Trotta companies including Keys Concierge which we know has also closed down. He is also the administrator dealing with the liquidations of two BVI companies, Limora Investments Ltd the parent company to all the others and also Excel Overseas Holdings Ltd. We also know that a new company by the name of Excel Overseas Holdings is based in Dubai. So we can assume that his job is either to revamp the “Club” or “liquidate it”, we actually believe it is the latter given what his company does.

This letter also goes on to explain under previous management Club Paradiso failed to pay for the contractual agreements and arrangements with other service providers and resorts. Now we also know that all these “service Providers” and “resorts are all part of the same group of companies owned by the Trotta family under Limora Investments Ltd.

Again we see another tangled web of intrigue and dodgy dealings which is resulting in nothing but stress and anguish for the consumers who have paid considerable sums for these products. We know from our readers that they are all worried they are about to lose everything, not just the holidays not being honoured but now having to pay for new bookings after they have already paid their annual maintenance fees!

To Inside Timeshare, this does not seem to be fair, most of these members have initially paid thousands of pounds to purchase the product and also thousands in annual maintenance fees. Now it does not take a lot of working out, but these companies have made millions over the years and this is how they treat their clients. SHAME ON YOU!

The letter from Alex Lawson

Have you purchased any product from Silverpoint, Signallia Marketing or any other company and are worried about all that is going on, then use our contact page and let us know. We will explain what your legal options are and point you in the right direction to get the legal help you need.

Remember, the courts are finding in favour of the clients on all cases going to court, this may be the only way not to lose what you have “invested” in your holidays.