by Michael (with Jan 5 court hearing summary by Liz Avison)
In Receivership……… That’s right, today is the official beginning of our resorts being managed by BDO in the capacity of “Receiver”. Now if this is a shock to you please scroll and click your way back through previous blogs to see why we are here today. As a brief recap – 25% of owner base was delinquent, the Board of Directors brought in BDO and started legal proceedings to see if resorts were financially viable. Only 10% of owners voted to stay, over half voted to pay an “exit fee” and get out…..including Wyndham. Resorts were deemed nonviable and as of today the Board of Directors are dissolved and BDO is the “Receiver”. So what is the role of the “Receiver”? It is many things, and for anyone who watched the court proceedings yesterday, BDO doesn’t have all those things planned out quite yet…..even though they have worked on this file for over a year and collected hundreds of thousands of dollars in fees...alas I digress...
The first step is that Colliers International, a commercial realty firm was given the listing to sell the resorts. There will not be a price put on the properties (technically there are 4), and there is a milestone or two in this process. The property will be listed and marketed for a duration. Afterwards, there is a period of offer acceptance – not that they will accept the first offer submitted, but for a period of time, offers will be accepted from any interested parties. My understanding, (and honestly owners like you and I aren’t given all the information clearly) is that after that window closes each offer will be weighed against the others. That is actually the easiest part of what is happening, the more complicated part is what happens with the delinquent owners - one lawyer yesterday referred to them as “allegedly delinquent owners” which I found amusing. It was also mentioned yesterday that any sort of monetary recovery owed to any owners – this is real estate of course – could be held back and applied to any arrears owed. This makes sense, when you sell a house your lawyer keeps their fees from the sales proceeds right? Where it gets complicated is what happens to any debt left over AFTER settlement - and note that those owners who are in good standing won’t get any sort of payout until it is dealt with, regardless of it being $5 or $500.
BDO told the Her Honour yesterday they expect to be back in court in a month or month and a half….
I know you can’t climb a mountain in one giant step but all these little steps and short court hearings end up being costly and eats away at any funds we owners could recover… Personally I hoped that BDO would roll out a plan, however it goes back to things being in “flux” and we all know that is what Michael J Fox used to go back in time……dangerous stuff that “flux”
As we were promised results of the BDO report by the Boards in 2019 it is nice to see that in 2021 there is tangible (electronic anyway) progress for what most of us knew was the only solution. The resorts need to be sold – full stop - and now that they are listed for sale that can happen.
For those who wish to read a summary of the court hearing, a draft is available here (thanks to Liz Avison): 2021 0105 Court Hearing Notes