The Grand Court’s Financial Services Division has ruled in favor of a dozen petitioners who sued MV Advisory Ltd., the property parent company of the now-closed Margaritaville Beach Resort and Spa on West Bay Road.
In a decision that was returned on Tuesday 27 Oct., Justice Raj Parker ordered that MV Advisory Ltd. “be wound up in accordance with the Cayman Island Companies Law” and liquidators from EY Cayman Ltd be appointed to assist in the process.
In his order Parker said the joint official liquidators are “authorized to do any act or thing considered by them to be necessary or desirable in connection with the liquidation of the Company and the winding up of its affairs.”
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 claimed that each petitioner purchased property, in the form of rooms and suites at the resort, from MV Advisory Ltd. The petitioners said sales agreements 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 original writ, 55% of the gross rental income was to go to the Developer [MV Cayman Ltd] and 45% of the gross rental income to the petitioners.
When returning his ruling in favor of the petitioners, Parker also ordered that the costs for bringing the writ be reimbursed.
On 22 March the resort closed its doors due to the COVID-19 pandemic. Water and other utility services were suspended. A statement on its website read 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.”
Ground-floor bars at the resort have reopened, and while the signage still says Margaritaville, its website now reads in part, “The doors to this location are closed, but paradise is still open. We welcome you to visit one of our other Margaritaville Hotel & Resort locations.“