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RDO

Silverpoint Declares Liquidation: Who will be Next?

Welcome to the Friday edition of Inside Timeshare, today we have some breaking news which has just been made public. There has been a huge amount of speculation regarding the Silverpoint, most of these rumours have claimed that Silverpoint has already been placed into liquidation, that is not actually the case. The process is more complicated than simply “going into liquidation” as we will try to explain.

On 15 January 2020, Silverpoint presented to the Mercantile Court a declaration of insolvency & provisional liquidation (Concurso de Acreedores). This does not actually mean they have declared bankruptcy. It is a legal process in Spain which can be invoked by the company voluntary or invoked by its creditors. It is applied when the company is considered to have more creditors than it does assets.

This move is something that Inside Timeshare and others including Canarian Legal Alliance have been expecting for some time. Over the past few years, Silverpoint has been monitored very closely with the movement of funds between various accounts at the forefront.

This transfer of funds and assets was a blatant move to hide them from the authorities to avoid payment, this has already resulted in an investigation initiated by the State Attorney. (See links for the report in El Diario at the end).

The first part of this process is for the Mercantile Court to appoint an external (independent) administrator who is then obliged to inform all creditors of the current situation. The administrator will also have to produce a full and exhaustive report on Silverpoint’s financial operation over the past years.

If the administrator discovers any serious irregularities not only with the liquidation but the actual running of the company, they can, in essence, classify the liquidation and company administrator guilty. This means that the administrator, which in the case of Silverpoint is Mark Cushway, may be personally responsible with his own assets, he may even face a custodial sentence.

Mark Cushway: Could find himself liable.

At this point Inside Timeshare must point out that Mark Cushway was also CEO of Resort Properties before it became Silverpoint so he must have known all about how the company was operated. He was also a director of the RDO (Resorts Development Organisation) the so-called industry trade body. Silverpoint was also one of the largest contributors to RDO funds until they resigned their membership.

The purpose of the Concurso de Acreedores is not to close the company down, it is to attempt to pay all creditors so as to clear the financial situation of the company and if possible overturn a complicated situation preparing the company for future business. Preventing bankruptcy is a priority of this procedure. However, if the declarations being presented are found to be a fraudulent application for insolvency, then this opens up a very nasty can of worms for the company administrators.

As our title suggests, could other timeshare companies be contemplating the same procedure?

Inside Timeshare has already published the fact that the Provincial State Prosecutor in Gran Canaria is already taking a keen interest in the timeshare resort of Anfi. This again stems from the fact that Anfi is transferring assets and funds to other various companies in an attempt to delay or even avoid paying what the courts have ordered. Again this could lead to criminal prosecutions and include jail time for the administrators of the companies involved.

https://insidetimeshare.com/anfi-hits-spanish-television-news/

The question now which will be on the minds of all those with cases waiting for court hearings and those contemplating taking out litigation against Silverpoint is where does this leave them?

From what we have been told our understanding is that it will not have that much of an effect, the cases will instead of being placed with the Civil Court using timeshare laws, will be transferred to the Mercantile Courts. This means that the clients will then be classified as creditors and will then have priority in the eyes of the appointed administrator.

Inside Timeshare advises all those with cases pending to contact their lawyers for more detailed clarification as to their own personal circumstances. For those who are clients of Canarian Legal Alliance, they have also published today this news on their website. This report goes into a lot more depth than we are able to here.

If you have not already filed a claim to have your contract declared null and void with the return of your full purchase price and would like to know how this latest news affects you, then please use our contact page and we will get back to you.

Our final word of warning is now this news has broken, please beware that there will be many “bogus” claims companies and law firms who will use this to their own advantage in order to scare people into paying for “legal services” as a matter of urgency. If you receive any calls to this effect then contact Inside Timeshare and we will help you sort out the genuine from the scams.

Have a great weekend and join us again next week for more news and information on the murky world of timeshare.

El Diario Article

https://www.eldiario.es/canariasahora/tenerifeahora/tribunales/Fiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario English

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=en&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Danish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=da&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario German

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=de&u=https%3A%2F%2Fwww.eldiario.es%2Fcanariasahora%2Ftenerifeahora%2Ftribunales%2FFiscalia-venta-propiedades-timesharing-sur-Tenerife-turismo_0_950155565.html

El Diario Finnish

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El Diario Norwegian

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El Diario Swedish

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Translations of this article

Danish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=da&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Finnish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=fi&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

German

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=de&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Norwegian

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=no&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Swedish

https://translate.google.es/translate?hl=en-GB&tab=rT1&authuser=0&sl=es&tl=sv&u=https%3A%2F%2Finsidetimeshare.com%2Fsilverpoint-declares-liquidation-who-will-be-next%2F

Start the Week: Legal News

Welcome to the start of another week, we begin today with some legal news which was announced last week by Canarian Legal Alliance. The first is a bit of a bombshell and will probably please many Silverpoint clients who have hoped for this kind of news for many years. The second piece of news is also of great importance and will be a blow to many companies within the timeshare industry.

On 16 September 2019, it was announced via an official court notice that it has been decided to open summary proceedings against Silverpoint and its administrators. This begins the process of an investigation into possible criminal offences perpetrated by Silverpoint and the administrators and the possibility of obstruction of justice.

It was agreed by the Judge and the Justice Department that there were very “serious indications of obstruction” and that a full investigation should, therefore, be launched.

This decision to launch an investigation following the filing of many complaints by lawyers of Canarian Legal Alliance against Silverpoint and its attitude to flagrantly disregard orders made by the courts to pay back to clients of CLA the money so ordered. Silverpoint has constantly failed to honour its obligation to pay the awarded amounts at the conclusion of the cases.

Part of the investigation also involves Silverpoint’s failure to produce information required by the court regarding the embargo of assets.

In direct response to the constant complaints and allegations made by Canarian Legal Alliance that Silverpoint and its administrators “conduct is prejudicial to Justice” the State prosecutor for Tenerife has decided to act. This investigation is solely against Silverpoint and its administrators.

This is obviously regarded as a very serious matter which could have grave consequences for the accused, with up to four years in jail. These complaints are now being used in all enforcement proceedings by CLA which may also have the effect of speeding up criminal proceedings and lead to convictions of those involved.

It is now obvious that Canarian Legal Alliance is totally committed to upholding the interests of all their clients, ensuring they receive the justice they deserve.

Inside Timeshare will be reporting on this as and when further news is released.

In another case brought against Club la Costa, (Vacation Resort Limited / Club La Costa Destination Club), CLA has won a very important argument in the Malaga High Court.

In a case filed at the Court of First Instance of Fuengirola, Club la Costa argued that the Spanish Court did not have jurisdiction and could not hear the case, this is due to the fact that the contract had a UK Limited company and that it was subject to the jurisdiction of UK courts and laws. Lawyers from CLA did not agree and challenged this argument. Unfortunately, the judge at the First Instance Court agreed and would not hear the case.

CLA lawyers then urged their clients to appeal this decision at the High Court of Malaga.

The case was then heard by the appeal court who agreed with the lawyers from CLA that the case should be heard in a Spanish court and that they did have jurisdiction. The State Attorney also submitted a report which clearly backed up the view of the CLA lawyers claim and the High Court’s decision.

Many timeshare companies have used this ploy to circumvent the Spanish Timeshare Laws, so this is a resounding success as it now leaves many more cases to be brought.

Club la Costa are also members of the RDO (Resorts Development Organisation) which is the trade body for the timeshare industry in Europe. A such, Club la Costa are bound to abide by the RDO “Code of Conduct” which states in paragraph 3.5  “To comply with all laws, which apply to Member’s, business in the jurisdiction in which the Member operates.”

So it appears that CLC is not only floating Spanish Law but also the terms of membership to the RDO.

CLA has also received more embargos one against Club la Costa through Paradise Trading SLU and another against Silverpoint.

This embargo against Silverpoint is just the latest in a series filed by Lawyers of CLA on behalf of their clients to ensure swift payment for their clients. This latest one is for over 30,000€ and follows a firm sentence by the High Court in Tenerife.

It is certainly becoming obvious that Canarian Legal Alliance and their lawyers are doing everything in their power to ensure that their clients receive the justice that they deserve. So to the legal team at CLA and their clients a very big congratulations.

When Inside Timeshare receives more news on these and other events it will be published here.

If you have a timeshare and would like to know where you stand legally with your contracts, please use our contact page and we will get back to you.

Anfi Hits Spanish Television News

Following Monday’s article about Anfi Sales and Anfi Resorts hiding assets in an attempt to avoid paying back money awarded to clients in the Spanish courts for the selling of illegal contracts, they are back in the news. This time it is on Spanish national television TVE 1.

They report what we already have published and what was published in El Diario, Inside Timeshare has a recording of the news item to which has been added subtitles it has also been uploaded to Youtube.

https://youtu.be/VOujAX_HS50

The lawyer who is dealing with this case on behalf of Canarian Legal Alliance clients, Eva Gutiérrez is being interviewed outside one of the CLA offices in Arguineguin, with the Anfi Resort in the background. In the interview, Eva explains the reason behind the emptying of bank accounts giving the reporter all the figures. She is also seen working on documents showing the various bank accounts.

Eva Gutiérrez

It is actually quite staggering the amounts which are in the millions of euros that are being diverted from these accounts to avoid court-ordered repayments. It is no wonder that the Provincial Prosecutor’s Office has been taking a very keen interest in this matter.

During the interview, Eva Gutiérrez also explains that CLA and their clients are urging the courts to appoint an independent administrator to oversee the accounts and the investigation. This blatant attempt we are seeing by the Anfi Group, who are also paying members of the RDO (Resorts Development Organisation) the timeshare industry trade body and governed by their code of conduct and ethics, is in the mind of Inside Timeshare possibly a criminal act.

As yet we have not seen any statement from the RDO regarding this and we very much doubt that they will even sanction them over this. So much for the trade body and their code of conduct and ethics.

This story should place no one in any doubt as to the lengths timeshare companies will go to deceive consumers, it should also remove any doubt as to the authenticity of Canarian Legal Alliance which has over the years been smeared by the timeshare industry as a criminal gang and swindlers!

Inside Timeshare knows who the real swindlers and criminals are and now so do you!

Link to the original article by El Diario with English translation in PDF format.

https://www.eldiario.es/canariasahora/tribunales/Anfi-Timesharing-Condenas-Justicia-Deudas_0_922158442.html

If you own a timeshare at Anfi or any other resort and want to know what your legal options are, then use our contact page and we will point you in the right direction.