Owners of timeshare at Club Paradiso in Los Cristianos, Tenerife have already or will soon be receiving the announcement below from Alvarez & Marsel, the original company appointed to explore the possibilities for the club following the demise of Silverpoint and associated companies in December 2019.
“Dear Sir / Madam,
Club Paradiso Limited (in Liquidation) (the “Company”)
As you are aware, the Company’s ongoing financial difficulties led to the suspension of the vacation club managed by the Company, known as Club Paradiso (the “Club”). The Company’s director has been unable to find a third party that was willing to take on the management role and, as such, the Club can no longer continue. The Company was placed into liquidation on 24 September 2020 in accordance with Section 159(2) of the British Virgin Islands Insolvency Act 2003.
Prior to the decision by the director to place the Company into liquidation, an alternative holiday program was identified and the director procured an agreement for the Club’s members to be able to access their program at discounted rates. It is noted that this alternative holiday program is unrelated to the Company, its current or former directors or shareholders. Further details regarding the alternative holiday program will shortly be communicated to members by the joint liquidator, Owen Walker of R&H Restructuring (BVI) Ltd, during October 2020.
We acknowledge that this has been a difficult period for all members and that it is hoped that the alternative holiday program sought by the director will provide members with an alternate membership program to continue with, if they so choose.
Should you have any further queries, please contact us.
Kind regards,
Club Paradiso Limited (in Liquidation)”
So what is next? Well the letter clearly states that holidays may still be possible for club members at discounted rates, quite what this means will no doubt be clarified in the future but for now your guess is as good as ours but this does leave us now with several questions:
- Why is no third party willing to take on the job?
- What is going to happen to the “members”?
- Are the members going to lose all their money?
One pertinent statement is “at discounted rates” so it appears that on top of the monies previously paid; you will need to spend more to access holidays already purchased.
With a whole series of closures and liquidations including Keys Concierge, Signallia, Excel Overseas Holdings and now Club Paradiso it is difficult to know where to turn. Many Club Paradiso owners have reached their current levels of membership via a complicated series of failed sales and resales of other products bought from Resort Properties and Silverpoint over the years. Typically, club members have spent many thousands of pounds to be where they are now? The good news is that it may be possible to recoup that money legally through the courts in Spain and other avenues.
If you are caught up in this mess, feel free to get in touch.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk