It´s now official – on the 15th of January Silverpoint Vacations SL, “Silverpoint”, made a declaration of insolvency & provisional liquidation . This comes as no surprise; the company´s assets have been decreasing year-after-year and it is facing mounting legal claims and court awards against it.
The news of Silverpoint´s bankruptcy proceedings is of special interest to the thousands of customers who have lost money on holiday and investment products such as Palm Beach Club, Club Paradiso, and the Excel Overseas Lodging Participation Programme Scheme.
What happens next?
The Mercantile Court in Santa Cruz, Tenerife, will control the insolvency proceedings and has already appointed an external administrator. The external administrator’s initial task is to prepare a detailed report into the financial status of the company. This entails compiling a list of the assets and liabilities the company may have and we expect this to take 2-3 months.
What will happen to existing lawsuits?
Lawsuits already initiated will continue to be processed by the courts in the same manner. The Nordic Consulting has already instructed its lawyers to immediately liaise with the external administrator so that they are aware of all future court awards.
What happens at the end of the insolvency proceedings?
The insolvency is either resolved through i) reaching an agreement with the creditors, or ii) via a liquidation. In the event of a liquidation, Silverpoint´s assets would be sold to pay off, as far as possible, creditors on a pro-rata basis.
It is possible, at the end of the bankruptcy proceedings, the company’s directors are declared to be “culpable” for the insolvency. In these cases, the directors may be personally responsible with their own assets. The good news is that the Mercantile Court can investigate and chase assets internationally.
Can I still register a new lawsuit?
Yes, the good news is that new lawsuits can still be initiated against Silverpoint, directly in the Mercantile Court handling the insolvency.
Former Silverpoint customers understandably want answers to many questions, including:
- Will another company honour the commitment to deliver me the property, holiday or income I am due?
- Can I still take Silverpoint to Court to declare my contracts null and void to release me from any potential future liabilities?
- Will I be liable for future maintenance fees on any timeshare products I own?
- Should I contact the external administrator to see if they will pay me something?
- Do I need legal representation to deal with the external administrator?
Please do not hesitate to contact The Nordic Consulting as soon as possible to find out your best course of action.