Company closures, administration and insolvency issues

I recently came across this article, posted by Timeshare Business Check, which I reproduce below to consider it of interest. I would include that it would be even more convenient to consult with a qualified solicitor - abogado registered with the appropriate Bar Association. Any precaution is little.

Complex issues have arisen related to administration and insolvency of a small number of timeshare businesses. These have in the main affected only sales and marketing operations, but not the operations of the resorts themselves and owners will still (subject to Covid-19 restrictions) be able to enjoy the use of their timeshares.

This has been the case with Azure in Malta and with CLC / Club La Costa. Members of both Azure and Club la Costa have been advised by the relevant Club managers that the Clubs continue to operate and the closure of the sale entities has no effect on members rights and usage at the relevant club.

The situation with some others, including resorts connected to Silverpoint have varied, with some resorts being closed.

When administrators/liquidators are formally appointed, owners can seek clarification from them.

Claims

With regard to any legal claims in these situations, we also recommend that owners seek clarification in writing from any business either currently acting for them or offering to provide a claims service.

If the cases are already live – with either judgement having already taken place or where a case has been filed with a court, ask for an update and to be kept updated from your legal representatives / and or the business you paid fees to for the claims process to take place. It is likely to be very difficult for your representatives to forecast an outcome, or even a timeline but you can certainly ask them (for example), if they consider it possible that you may not in the end receive the sums they initially indicated and whether it is even possible that you may not recover the fees you paid for your claim. This may be helpful in terms of assessing your own potential financial risk position.

If a claim has not actually been filed as yet and you have concerns about announcements of company closures, administration or liquidation proceedings that may be taking place, we recommend that you ask those that are offering services to advise in writing if they feel there is any risk of claims not being fulfilled as such risks are normally higher owing to the circumstances.

If you feel you are not receiving appropriate advice or are doubtful in any way and are seeking clarification, please let us know and we will seek clarification from the businesses involved, including administrators.

Timeshare Relinquishment

If you are simply looking to relinquish your timeshare, we recommend you always first discuss it with your timeshare company / resort. Many do have an exit policy and all members of the Resort Developers Organisation (RDO), which includes many of the timeshare businesses in Europe have an exit policy in place, and depending on your personal situation, you may be able to hand back your timeshare free of charge, subject to the management fees being fully up to date.

Note – KwikChex has been alerted by timeshare owners of gross misrepresentations taking place regarding timeshare relinquishment. Some businesses offering exit services are now telling owners that even when their timeshare company has put in writing that they can relinquish, the scammers use scare tactics and tell them the contracts can be reinstated later and they still need to pay for a service. Such behaviour is unlawful and should be reported. KwikChex has brought this matter to the attention of the authorities.

KwikChex has also published information on avoiding timeshare exit scams – you can access this using the following link – https://timeshareexitconcerns.co.uk/timeshare-companies-key-facts/ This site also contains information on timeshare consumer rights.

You can read the original article here: https://timesharebusinesscheck.org/timeshare-closures-administration-and-insolvency-issues/