A dozen people have petitioned the Grand Court’s Financial Services division to recoup debts from MV Advisory Ltd., the property parent company of the now-closed Margaritaville Beach Resort and Spa on West Bay Road.
At the same time, the Department of Labour and Pensions has launched an investigation into the company for failing to pay health and pension contributions as required by the Labour Law.
In a 64-page writ filed on 19 June, the 12 petitioners also named HHG Cayman Ltd., now MV Cayman Ltd., as the developers who were responsible for stratifying the property.
The petitioners claim MV Advisory Ltd. owes them a combined total of more than $1.06 million in unpaid debts, which they say accumulated between October 2019 and March 2020.
The writ alleges that each petitioner purchased property, in the form of rooms and suites at the resort, from MV Advisory Ltd. The petitioners said sales agreement dictated sold properties were to be used alongside the unsold rooms as part of the resort’s accommodations, which would be rented to hotel guests.
According to the writ, the hotel manager was to “allocate 55% of the Gross Rental income to the Developer [MV Cayman Ltd] and 45% of the Gross Rental Income to the Proprietors [the petitioners] of the Strata Lots sold by the Developer which are operated as rooms for guests of the Hotel.”
The petitioners said they did not receive any payment between October 2019 and March 2020, and are now asking the Grand Court Financial Services division to name liquidators from EY to oversee the winding up of MV Advisory Ltd.
According to a post on the resort’s website, dated 22 March, the hotel is temporarily closed “due to COVID-19”.
The statement reads in part, “The property owners intend to reopen on October 31, 2020. However, the resort will not reopen as a Margaritaville resort. The resort will reopen under a rebranded name.”
The matter is currently ongoing before the courts.