- Mar 24, 2006
- Reaction score
A significant and very substantial obstacle in this matter that cannot just be conveniently ignored is that 80% of the interval owners must first consent to a termination agreement for the facility to lawfully and officially cease as a timeshare property. So....eight out of every 10 owners must both respond and agree --- Good luck with that! Meanwhile, the billable hours of the law firm involved in this mess will just keep right on accumulating --- Ka-Ching!If the property is worth $10M, there should be some value owners should receive a portion of proceeds.
This case might become even more interesting. As noted previously (see post #5 above, from 12/12/2016), 80% of the ownership first needed to overtly consent and agree to terminate and that threshold was never actually met. It remains to be seen what, if any, that apparent procedural shortcoming will have (if any) on future developments in this matter.
The owners were never asked whether they wanted to terminate before the bankruptcy was filed. The board of trustees filed bankruptcy suddenly without prior notice, closed the buildings, laid off the workers, leaving dozens of vacationers stranded with no place to stay on Labor Day weekend. The first time owners were asked whether they wanted to terminate was when they were staring down the barrel of a bankruptcy...the bankruptcy trustee took a poll. Nobody had enough info or alternatives presented to make an informed decision. This is why I stepped in to pull my building out of the madness. I also knew (from consulting my own attorney) that legally the Trust owned nothing. And we were both shocked that the judge allowEd the bankruptcy to proceed past the first court appearance.This case might become even more interesting. As noted previously (see post #5 above, from 12/12/2016), 80% of the ownership first needed to overtly consent and agree to terminate and that threshold was never actually met. It remains to be seen what, if any, that apparent procedural shortcoming will have (if any) on future developments in this matter.
What a mess...
I am curious how much the distribution checks were?I am reading this with much interest. Over the past few years, the Waves, an Ocean City Maryland based timeshare-also fell upon hard times. Non-paying owners, lots of debt etc.,. Lemonjuice CEO Alex Krakovsky, bought quite a few of the delinquent timeshare units and joined the board. I personally am glad he did as he spearheaded the bankruptucy and eventual auction of the units that the hoa and the association had in their possession. There had been little maintenance or upgrades to the units for years and the property was rejected by RCI and we could no longer deposit our weeks, we could use them, but only the weeks we owned, which took away the little flexability we had in usage. The owners were originally given the option of turning their weeks back in to the HOA. For those that held out and kept paying their maintenance fees they were in line to receive a portion of the proceeds, when the units finally made it to the auction block. And the hoa did get 100% of the owners to agree to the sale even if a few holdouts did eventually get strongarmed to do so. The auction took place back in the fall, and as of now, two distribution checks have been doled out. From my understanding there is one more small one to come, when the remaining four or five units are sold. I no longer have to worry about rising maintenance fees and special assessments.
I think this guy might be liquidating properties as a business. I still have almost a box of paperwork that went through the process, it wasn't simple but it did eventually work.
Is there an update on what happened to Building 3? I note that there are no Harbor Hill listings in RCI [nor II] at the present time. So is Building 3 no longer a timeshare?Please note: Building 3 of the now defunct Harbor Hill resort is NOT part of the bankruptcy and continues to function as a timeshare while we sort out what's next. We are open for business and have weeks available for rent and exchange (though almost all of our bulk banked RCI weeks have been snatched up already). The reason we are not part of the bankruptcy is that, for whatever reason, the developer set up our building as a separate condo association. We were better able to weather the insolvency crisis because we have quarter shares in our building that pay 60% of the revenue and pay fees every month rather than once/year. The QS owners also have much, much more skin in the game than weekly owners and therefore are easier to convince to keep paying fees to preserve their ownership rights and the value of the property. I am the condo president and am currently managing the reservations from off site.