If you are a member of Club Paradiso, you probably have just received a twelve-page document by email. The Nordic Consulting is receiving a lot of enquiries from Club Paradiso members asking what this letter means and what they should do.
The Nordic Consulting strongly recommends that you DO NOT RELINQUISH YOUR MEMBERSHIP OR SIGN AND RETURN ANY OF THE FORMS.
We explain the reasons for this below:
What does the letter say?
The letter is from the people running Club Paradiso Limited as part of the liquidation process. They write that:
- Alexander Lawson of Alvarez & Marsal Cayman Islands Limited has stepped down as sole director and the Club is being liquidated as it “is no longer viable and is unlikely to be able to provide service to Members in the future” (page 1)
- they want to tell owners about an opportunity to sign up to a new club based around various “Regency” resorts in the south of Tenerife – a special deal available only if you relinquish your membership to Club Paradiso
- the liquidators “have been unable to establish that the Company itself sold memberships or formally engaged third parties to perform these sales on its behalf” (page 4). This is incredible – no one believes that club memberships magically sold themselves!
What do we think about the offer
- Do not surrender your membership!
The letter makes clear that members of Club Paradiso will not be invoiced any annual fees going forward (page 4). In surrendering your membership, you would “waive, release or discharge any claims”. Currently many clients of The Nordic Consulting have legal proceedings in place, and this is still the correct course of action regarding Club Paradiso membership.
- Don´t fill in and return any forms.
Expert lawyer Miguel Rodriguez Ceballos comments that Club members didn´t sign any contracts with Club Paradiso Limited, the supposed company going through the liquidation process. Therefore, this request to send in paperwork makes no sense.
- Don´t be tempted by the “Regency Offer”.
Why pay for holidays with an unrelated third-party company? You can always book direct! The “Regency Offer” claims to be a “Discounted Price” – starting at GBP 603 for a seven-night stay for a studio. But currently on regencytorviscas.com, the first complex mentioned in the letter, we can see studios are currently on sale for GBP 46.82 per night for two people. That´s the equivalent of GBP 327 for a week – about half price!
In our opinion this letter is an attempt by someone to:
- have less liabilities related to Club Paradiso legal claims and
- to use the database of Club Paradiso members to earn more money by selling them more risky holiday products in the years to come
What the letter does not say
- It does not say why the liquidators are trying to get Club members to relinquish their memberships
- It does not say who members are signing up with for the Regency offer – it only mentions the participating resorts.
Why are the liquidators getting their hands dirty in this way? We are not surprised – given how we have previously reported on the links between the liquidators and the ultimate owners of Silverpoint.
In conclusion, if you have received this letter and have already starting litigation against Silverpoint Vacations SL regarding Club Paradiso there is nothing that you need to do at this time.
If you have not started any litigation, we recommend that you discuss your options with one of our legal consultants.