There are several questions that have been bothering me regarding the Fairmont situation that we are all affected by.
1. Who are we dealing with?
As I understand it!
Several years ago (6 or 7) we were offered an investment opportunity by a group from Fairmont called FRPL (Fairmont Resort Properties Limited) which promised to pay 12% on our investment. The key presenter of the scheme was Ed Nochalt. Colin Knight was there as well as others of the Fairmont group. We never invested but several people invested large sums into this plan. Some I know personally invested $100,000-$150,000 and much more. Interest payments were made for a few months then stopped. When Fairmont went into receivership, several of these investors (whom I know personally), formed a company called Northwynd and took over the assets of Fairmont. They knew nothing about running a timeshare company so left the same administration in place (who had run it into the ground by skimming large sums into their pockets).
These investors (Northwynd), have devised a scheme (using a very clever lawyer) to recover some of their investment. The cash call for refurbishing will likely be funneled off to these investors by calling it repayment of loans or payments to creditors. This may be legal from the so called trust funds. There are no indications where the funds from those who are opting out will be allocated to. They are to go to a trust account of the lawyer. What are the conditions of this trust and what is it for? I understand it will go into the pockets of the Northwynd investors group.
2. Who are the principles of Northwynd?
3. Where did Northmount come from?
4. If we indicate that we are opting out, and we pay nothing towards it (or a token amount), would we be subject to the 2% per month? There is no mention of how this would be handled. Maybe this could be stretched out for several months or maybe years at say $10 a month since we as pensioners can only afford that much. I don’t think they can start action if you are attempting to pay the debt.
5. We also own at Lake Okanagan. How is this going to affect this resort since it is owned by Northwynd?
6. I would expect that most of those who are taking the option to pay the refurbishing fee would take the $100/month option. This will not put enough cash in the hands of Northwynd to proceed with any sort of refurbishing and the whole scheme will collapse. No bank will advance credit to anyone in the financial condition of Northwynd.
7. I believe Northwynd has a questionable name in the Valley, so they may find it hard to get contractors to work for them unless it was cash up front.
8. How does this affect our status with Interval International? We have 4 weeks banked with them. Will we still have a membership with them and be able to use Getaways?
9. Some owners have looked at engaging a lawyer to act on their behalf. The only thing a lawyer can do for you is take your money and give you some advice. Some owners think they can start a class-action-suit. This is not feasible since there is no loss to be recovered in this case. THESE ARE SOME OF MY CONCERNS AND I WOULD LIKE TO HAVE SOME OTHER’S IDEAS!
