An order was made in Grand Court on Tuesday afternoon putting Indies Suites Ltd. into provisional liquidation.
The ex parte petition for the liquidation was made by attorney Alan Turner of Turner and Roulstone on behalf of a group of Indies Suites timeshare owners.
Chris Johnson of Johnson and Associates was appointed Provisional Liquidator.
‘I am meeting with the attorney’s for Indies Suites this afternoon with the liquidator’s lawyer, Alan Turner,’ said Mr. Johnson on Wednesday. ‘The provisional liquidator has commenced his investigation into the financial position of the company and will be looking into its transactions over the past few years.’
Mr. Johnson said he had already commenced discussions with bankers and insurers of Indies Suites Ltd.
Since the Indies Suites property and adjoining land parcel have already been sold, the pending final settlement of the insurance claim could be the most significant remaining asset of the company.
The land registry transfer document shows the Indies Suites properties were sold to St. Matthew’s University Facilities Ltd. on 27 January 2005 for US$2.8 million, Mr. Johnson said.
At the time of the transfer, there were mortgages recorded on the properties by Cayman National Bank totalling $3 million.
It is not been made public what the exact balance of the mortgages was at the time of the sale, but Indies Suites owner Ronnie Foster has indicated the proceeds of the sale went to pay off the mortgage.
Mr. Foster also said an interim insurance settlement payment of CI$200,000 was made in December, but that much of the proceeds of that cheque went to pay mortgage payments and a $54,000 severance package to Indies Suites employees.
Rod Broome, who administers an Internet group forum for Indies Suites club members, said 103 people had joined the group as of Monday, with another 35 expected to come on board.
‘The money for the legal fund is pouring in by checks in the mail and PAYPAL from members outside the USA,’ he said. ‘People are desperate to join the battle. Not one of the members has declined to put in our suggested amount (of money for the legal action).’
Mr. Broome said Mr. Foster was wrong to think none of the Indies Suites owners would hire a lawyer to sue him over a $10,000 investment.
‘Now we have a big group that has banded together,’ he said.
It is also known that other Indies Suites owners have contacted another local law firm in conjunction with this matter.
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