Another Petition in the Indies Suites Ltd. matter was filed in Grand Court last week requesting the company be wound up.
After it overturned the earlier Liquidation Order last month, the Court of Appeal allowed 30 days from 18 November for a re-filing of a petition before US$1.538 million held by the Court was released.
The Petitioners, Roderic and Geraldine Broome of Minnetonka, Minnesota, purchased in April 1994 the right to occupy a one-bedroom unit at Indies Suites until 31 December, 2092.
They claim that Indies Suites did not fulfil its contractual obligation to restore or rebuild the property in the event it was made unsuitable for use by club members.
The petition, which was filed by the law firm Turner & Roulstone on behalf of Mr. and Mrs. Broome, further states that the Indies Suites property has been sold to a third party, making it impossible to fulfil its obligations.
The petitioners therefore claim Indies Suites owes them the entire US$10,700 they paid for their club membership, or the proportion of that sum that represents the unexpired portion of the 99 year lease, from 30 September, 2004. That figure is calculated at $9,511.11.
The petition finally asks for the company to be wound up.
‘The purpose for which the Company was formed cannot now be continued and it is clear from publicly available information that the Company is in severe financial difficulty,’ it stated, adding ‘in all circumstances, the Company should be wound up by this Honourable Court under the Companies Law (2004 Revision).
Unlike the previous Indies Suites matter filed in Grand Court, there are no supporting creditors listed on the petition.
Alan Turner, attorney for Mr. & Mrs. Broome, said Indies Suites could pay his clients the $9,511.11 to settle the claim, but that it would not end the matter.
‘Other creditors could be substituted [on the petition],’ he said.
Since Indies Suites would be unable to satisfy all of the creditors that could be substituted, the liquidation order was requested.
Ronnie Foster, part owner of Brac Construction, which is the sole shareholder of Indies Suites Ltd, said he was aware of the new petition, but that he had not yet met with his attorneys about the matter.
Mr. Foster said he was not sure what to make of the new petition, but that he was working with club members to resolve some of the claims.
Club members were being offered two choices by Indies Suites Ltd.; either a prorated cash settlement or a timeshare unit at Plantation Village. In the case of the latter, club members have to pay the difference, if any, between what their cash settlement would be and the price of the unit.
Some of the 177 supporting creditors to the last, ultimately failed, petition had agreed to accept settlements, Mr. Foster indicated.
Although he did not know the exact number off the top of his head, Mr. Foster said more than 100 former club members had indicated their agreement to settle directly with Indies Suites Ltd.
No settlements can be made, however, until the funds held by the court are released, the Indies Suites website states.