I also am really happy with the new government. The gentleman who
has been dealing with everyone on the behalf of the timeshare owners
made a really nice statement about how the new PM has
really impressed him.
thanks for finding that article liz
from amigoe right?
this article seems to be incontradiction to what john cole has been psting and advising his froum members
it is just a bunch of missing pieces to the puzzle
Originally Posted by lizzardo
ORANJESTAD — The government announced that five candidates have reported for the purchase of The Aruban Resort. The government is working hard on a plan to re-open The Aruban within short. The hotel is to be sold through an auction.
According to Minister of Tourism, Transport and Labor, Otmar Oduber (AVP), a management team is ready to ‘open the hotel within 24 hours’. He states that the government has a ‘moral debt’, which has to be paid. “The legal part should be solved. There is an investment plan and the people and companies are ready to re-open the hotel.” However, the mortgagees, approx. 4.800 people with a timeshare-unit, still have to agree.
An alternative is to wait until the general meeting of the timeshare holders, which is scheduled for next month. During this meeting, one could decide to appoint a new management team, which could be realized within five to six weeks, according to the government. However, both solutions are temporary, Oduber explains. It is the intention that the hotel will eventually be sold through an auction. “Nevertheless, it will take at least four or five months before the sale has been finished.”
Hi All, The group of 7 lawyers met today and decided it would be better to put off the Court until next Wednesday January 27,2010 at 1:30 P.M.
I am trying very hard to keep my sanity at this point. I believe that the time frame will be met, but they take their sweet time in making decisions.
I thought for sure I would have the answer for you. You just cannot get these lawyers to act in a reasonable time frame. This has nothing to do with the Government. I can assure you that Minister Oduber is not happy.
All we can do is to wait it out. I do believe that the resort will open for business for week 6, but it will be a last minute decision.
Posted: Thu Jan 28, 2010 7:32 am Post subject: January 27,2009
Dear members and guests, Because of delays in dealing with all the various legal parties in Aruba, the opening of the resort will be delayed at least until February 11, 2010. We had hoped to be open for guests by February 5, 2010
Dealing with bondholders and curators is very difficult. There seemed to be a lack of understanding between all parties as to their respective roles in not only the rights of ownership but as to what the consequences were in failing to open the resort.
Finally, it appears that all parties now on the same page and we can now work to obtain the financing needed to assure that the resort can remain open long enough to get it stabilized for the long term.
I have now been at this daily for a month now. I know this is not what you wanted to hear, but what we have to lose is everything, so what we are fighting for will effect you all in the future.
We had expected to be in the Court today but the delays of the curators and the bondholders have caused the operation to be delayed two weeks beyond what was expected to be the opening date. I hope that all of you and all of the employees do not get discouraged. We will prevail and the resort in time will be better than before.
There is anxiety and stress with all who are involved. It is a lot to ask of all of you to but the financial burden for now hopefully will allow you to enjoy the resort as to how you expected it to be. It will take time, but it will be worth it someday soon.
In all probability, The Aruban Resort will re-open in about ten days’ time.
In all probability, The Aruban Resort will re-open in about ten days’ time. ORANJESTAD — The Aruban Resort will be re-opening. The Aruban investment bank AIB is granting a loan of 750.000 dollars (in round figures 1.4 million florins). The government will stand surety for the amount. The American Royal Resort, engaged by the banks and by timeshare owners, will be managing the hotel for the time being.
Moreover, ninety percent of the more than 200 dismissed co-workers will be re-employed.
During a press conference this morning, Tourism-minister Otmar Oduber (AVP) said that the government acts as ‘secondary guarantor’. In first instance, the hotel will repay the loan from its revenues. If that is not sufficient, one could still claim the money, which the timeshare holders have deposited into an escrow-account for the maintenance.
AIB manages this account. According to Oduber, this account holds an amount of 2.4 million dollars. “In any case, there is sufficient money for the next ten months. If money is still needed after that period, then it regards 350.000 dollars, which the government will possibly have to pay.” The hotel yields an annual amount of 20 million dollars for Aruba, in which case 350.000 dollars is not much, according to the Minister. Moreover, the timeshare owners also stand surety first. They have collected 300.000 dollars in case there are any problems with the repayment of the loan. “The government will only come on if none of the above works out” according to Oduber. Furthermore, he requests strict monitoring of the management of the hotel after the opening.
Nevertheless, the agreement still requires the parliament’s approval. The Minister forwarded a letter to the States today, requesting an emergency debate on The Aruban Resort. The timeshare owners and banks who had placed a claim on the hotel after the bankruptcy on December 17th, will be signing an agreement with the AIB this Friday. It is possible that the hotel could receive a touchup first on Saturday, as the complex and facilities, such as the swimming pool, had not been kept up for months. Minister Oduber expects that the hotel will re-open in about ten days’ time. The Key Largo Casino, which had been declared bankrupt on December 29th, will also re-open in due course."
Dear Members, I will attempt to get the court ruling posted in full on the new website, so it will be available for you all to read in its entirety.
A quick overview of the ruling.
1. All parties withdrew their interventions and sided with the plaintiffs. That would include the curators and the bondholders.
2. The Court ordered the exisiting COOP to enter into a loan agreement with Aruba Investment Bank for the amount of $750,000.00. They will refuse to do this so the plaintiffs will be allowed to enter into the agreement in place of the exisiting Board until the General Meeting on February 22, 2010.
3. The Government has agreed to back the loan along with the maintenance fees collected for 2010 to be used as collateral. This is a loan to be paid back over a two year period. Without this start up line of credit the resort could not possibly open. The maximum liability for any owner is 100 florins or roughly $60.00 if the for some reason the loan is defaulted.
4. The Court also ordered the existing COOP to enter into a management agreement with Royal Resorts for the interim period until the General Meeting on February 22, 2010. Then the new board will extend the management agreement.
5. The existing COOP was ordered to pay all of the Court costs which amount to 3,000 florins Attorney Fees and 450 florins in court registry fees.
The money in the escrow account will be transferred to a new account of the management company when the new agreement is signed. Hopefully, all of this will take place before Monday.I am also hopeful that we can get some of the employees back to work as early as this weekend.
Royal Resorts are flying in some of their top engineers, IT people and other support management to assist in the opening. I hope that this rough explanation is acceptable to you all. As soon as we get power and access to the office and data the maintenance fees will be sent out. Members then will be able to pay by credit card.
None of this could have been accomplished without the assistance of the new Government of Aruba. We believe we have a budget that will allow the resort to remain open and to be stabilized in a few months. With the income from the Maintenance Fees and the rentals of units, the resort should carry its own.
I am hopeful that all owners will support this effort and together we can work to the future. I apologize for the short explanation of the ruling and I will try to make all the documents available to you as soon as possible."