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ONA Group

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.

Start the Week: Spain on Lockdown

Welcome to another week with Inside Timeshare, as you will have seen from the news, Spain is now in a “State of Alarm” and we have all gone into lockdown and stuck at home. This has also affected the courts with all trials suspended with only the criminal courts operating and dealing with those who have been arrested. Therefore there is likely to be no news coming from the courts for some considerable time. Inside Timeshare will try to keep you posted on the latest with regards to the “fake law firms” and “scams” that we find.

There has also been a very disturbing email from one reader over the weekend, this is by no means the first one either.

Our reader received a call from someone claiming to represent Timeshare Legals Limited, although we have not published anything about them as all seemed to be above board this latest call is definitely one that has to be reported.

In the call to our reader who is a Silverpoint owner, the caller claims that the administration process of Silverpoint has reached a conclusion and there are no more creditors. Going on to say that to pursue Silverpoint claims via this route, in other words becoming a named creditor and making a claim is a waste of time. It was also stated that Silverpoint has also been sold to Ona Group.

Not to put things straight, the court-appointed administrator has not yet concluded their investigation, they still have a long way to go. They still have to identify all creditors, bank accounts and also the company structure. It is also a fact that any claim which is lodged against Silverpoint in the civil courts using the timeshare laws, the client will also be lodged with the Mercantile Court which is overseeing the liquidation process.

The job of the administrator is not to just go through the motions and liquidate the company, their first priority is to creditors, this means that they must try and find a solution to keep the company afloat or to ensure that it can be sold.

AS for Ona Group “buying” Silverpoint that is definitely untrue, Excel Hotels and Resorts SL has sold their management rights to Ona Group, this means that now all the resorts are under the management of Ona. They are now responsible for the running, maintenance and the collection of fees.

Although we know that Excel and Silverpoint are part of the same group of companies, their respective fields are different.

Silverpoint was the sales and marketing arm, they sold the products and the resorts, Excel was the management company responsible for running the resorts, two totally separate areas.

Once again this shows that you cannot take at face value what someone on the end of the telephone and cold calling you are saying. Do your homework before you go any further.

So from the lockdown in Spain take care and stay safe.

Maintenance To Pay or Not to Pay?

One of the recurring themes in the emails Inside Timeshare receives from readers is about maintenance fees, should they just stop paying them to get out of the timeshare? Well, as we have seen from some of the “exit” companies scams this is one of the tools they use to get owners desperate to be rid of their timeshare to pay their extortionate fees. So what is the truth behind this?

When you first purchased your timeshare you signed a contract with the resort that you would be responsible for and pay the annual maintenance or management fees. You are obliged to keep these payments up to date as you have signed and agreed to this in the contract. Failure to do so places you in breach of contract.

We have seen this subject discussed on many forums and there is a very marked difference of opinion, you will always find there is at least one who boldly states that is what they did and they have never been taken to court. Well, one thing is certain they have either been very lucky or they had a timeshare which just “repossess” after 2 or 3 years of arrears and puts it back on the inventory to be resold as new.

But there are many who have fallen foul of this, with many of them being told to stop paying by the “exit” company they paid to extricate themselves from the maintenance burden. It is usually around the 3rd year that the demands start to get stronger with the threat of legal action. The “debt” is then sold to a debt collection agency and it is now their debt.

Once this debt has been “passed over” that is when the real problems begin, high interest starts to accrue, late payment charges and of course the legal fees for the debt collection agency. If this is not paid either in full or agreed on instalments then the next stage is the County Court.

This brings us to yet another regular comment on the various forums, why have we never seen anyone comment that they went to court and received a County Court Judgement (CCJ)?

I think the answer to that is very simple, who is going to publicise the fact they have just received a CCJ for not paying their timeshare maintenance?

As far as the County Courts are concerned all they see is a debt which has not been paid and is subject to a signed contract. They are not interested whether it was mis-sold, illegal in Spain or any other reason for that matter, all they see is a contracted debt.

In most cases which Inside Timeshare has been in touch with readers, they have tended to pay it, rather than have a CCJ hanging around their necks.

It is a fact that timeshare companies do pursue unpaid maintenance, some more vigorously than others. Ona Group, for instance, has been issuing court proceedings for past owners of Cala Pi Resort in Mallorca. Several of these have been in touch with Inside Timeshare with the same story.

In all cases, they had handed back their timeshare weeks to the resort around 10 years ago and in one case 15 years ago. They have never had any demands for maintenance until Ona Group came along. Ona took over the management rights to Cala Pi some time ago, it then began to issue demands for all the arrears in maintenance fees. When questioned about this by those ex-owners they were told there is no record of them handing the timeshare back, the arrears stand and if not paid then court proceedings will follow.

Shall I make them an offer they can’t refuse Don?

The thing is the proceedings are being dealt with in a Barcelona court, once the court rules the debt will then be passed to a UK based law firm to enforce payment through the county court. This itself is going to add significant amounts to the final bill.

So, the answer is never just to stop paying your maintenance fees, if any company tells you once you go with them to stop paying, then that needs to be questioned. The advice of Inside Timeshare is to contact your timeshare company especially if you have been told to stop paying, they may have a very good surrender policy and other procedures in place for financial or medical problems.

Once again never take at face value what you are told by any company that calls you, do your homework first.