A writ of summons filed earlier this month demanded the immediate payment of nearly US$234 million from Cayman Islands developer Michael Ryan, according to records filed with Cayman’s Grand Court.
The writ was filed on 16 March by the same company – RC Cayman Holdings LLC – that in February sought to install its own appointed executive strata committee to govern certain areas of The Ritz-Carlton, Grand Cayman’s resort properties.
The earlier civil action was filed on 17 February in the Grand Court by RC Cayman Holdings LLC against Cesar Properties Ltd. and Condoco Grand Cayman Resort Ltd as the first and second defendants, and against Michael Ryan, Frances Doud and Tony Haddad as third, fourth and fifth defendants. The action was amended through a filing on 28 February.
The 16 March civil action was filed against Mr. Ryan alone.
According to the writ: “On 15 March, 2012, the plaintiff [referring to RC Cayman Holdings] demanded payment of the sum of US$233,933,167.99 by 12pm Eastern Standard Time on 16 March, 2012, from the defendant [Mr. Ryan] in accordance with section 1.5 of a guarantee agreement executed as of 16 April, 2007, by [Mr. Ryan] … in which [Mr. Ryan] as guarantor irrevocably and unconditionally guaranteed the payment to [RC Cayman Holdings] of the full amount of the debt …
“The defendant [Mr. Ryan] has failed to pay the plantiff [RC Cayman Holdings] the sum of US$233,933,167.99 pursuant to such demand.”
The writ filed on 16 March also seeks the payment of contractual interest on the loan amount. This includes a daily rate of interest of some US$16,116,99, which would accrue in the normal life of the loan. An additional ‘default’ interest will accrue at a daily rate of US$32,337.47, according to the writ.
The Caymanian Compass contacted Mr. Ryan Tuesday seeking his response to the latest filing in the case. The newspaper had not received a response by press time Tuesday.
The February Grand Court action claims that pursuant to a loan agreement, RC Cayman Holdings is entitled to exercise its powers of attorney over the first and second defendants, Cesar Properties Ltd and Condoco Grand Cayman Resort Ltd. It seeks to restrain those defendants from interfering with the plaintiff’s “proper exercise of its powers of attorney”.
Against the remaining defendants, Mr. Ryan, Ms Doud and Mr. Haddad, the action, seeks a declaration that the executive committee appointed by RC Cayman Holdings over five different Ritz-Carlton strata plans is valid. It also seeks a injunction against the third, fourth and fifth defendants – which it calls the Old Ex Co – “from interfering with the rights and duties of the Executive Committee.”
Ritz-Carlton developer Michael Ryan issued as statement dated 29 February, stating the writ had been filed “by one of the lenders to the project and it is in relation to the lender’s rights to participate in the management of various strata corporations”.
Strata plans in the Cayman Islands are the entities that manage certain aspects of condominium projects, such as common area maintenance and improvements. Although the hotel part of The Ritz-Carlton, Grand Cayman is not part of a strata, the north and south towers of The Residences of The Ritz-Carlton, Grand Cayman are part of separate strata plans, as are the garage structures and several common areas.
Mr. Ryan said there was an issue as to whether the lender was entitled to exercise the rights it was claiming and that discussions about the dispute were ongoing.
“I can say that we do not believe that, as a result of this action, there will be any effect on the normal operations of the resort or any impact on our owners and guests,” he said. “It is hoped and expected that an agreement between the parties to resolve this matter will be concluded in the near future.”