The company, multi condemned for it´s timeshare business in the south of Tenerife have begun the process of liquidation! Silverpoint Vacations enters into bankruptcy proceedings after emptying its accounts to avoid payments to their former clients.
This holiday ownership business erected in the South of Tenerife during the eighties by British business man Robert (Bob) Trotter has entered the first phase of liquidation. Silverpoint Vacations emptied their accounts, disposing of most of their assets in the midst of a torrent of judicial convictions. Due to the irregularities in the commercialisation of these type of tourist products, the company, Silverpoint Vacations, enters into bankruptcy and has declared itself in voluntary liquidation.
Silverpoint Vacations have been Investigated by the Provincial Prosecutor’s office of Santa Cruz de Tenerife. This investigation took place due to the massive sale of properties used to screen companies as well as dividing funds to companies of the same group abroad. The company is now in the hands of a bankruptcy administrator. The voluntary declaration was published on February 1 in the Official State Bulletin (BOE).
Silverpoint Vacations enters into bankruptcy. Was this planned?
Three months prior, in November, the company had taken a final and enigmatic step. Completing the sale of 100% of its shares to another company, Fios Bergan SL, with headquarters located in La Coruña. Fios Bergan SL are dedicated to the manufacturing of textile fabrics. Without cash flow, with accumulated debts and with “zero” capacity to access credits. The liquidation was requested in September.
The collapse of Silverpoint Vacations started back in January 2017. The first final judgement was for the sale of timeshare and long term holiday products, which was ruled against them. One case in particular, in which a client was sold the holiday product as an investment with promises of a lucrative resale has been annulled by the Supreme Court. This conviction opened the flood gates, allowing many owners to follow suit. Viking Real Estates & Consultants are already assisting many owners in claiming money to the value of millions of Euros!
Following the first final court decision, Silverpoint Vacations initiated a convoluted strategy on which the Prosecutor's Office has now placed the magnifying glass. They are now investigating the manoeuvre of its administrators who are attempting to avoid payment to the clients who sued and obtained a favourable ruling. The company, which operated four tourist complexes in the south of Tenerife, paralysed its activity and stopped earning. They turned over management and workers to other societies of the same group that had not signed contracts.
In parallel, Silverpoint Vacations began to empty its accounts through formulas such as the recognition of debts with companies of the same group (Signallia Marketing; in charge of reservations, or Excel Hotels and Resorts; responsible for management). In addition, between September 2018 and February 2019, they removed 52 of the 76 properties they owned. The Public Ministry investigates whether these operations respond to an orchestrated strategy with the sole purpose of avoiding civil liabilities and preventing embargoes.
Procedure in the Bankruptcy Court of the United States
A procedure in the Bankruptcy Court of the United States (USA) for the southern district of New York recently uncovered that the Silverpoint resorts in the south of Tenerife were the main source of income of a gigantic corporate framework with ramifications in tax havens. The parent company, Limora, was established by Robert Trotta himself in the British Virgin Islands in 2008. An investigation carried out by the two administrators appointed by the US court, focused on the activity of Silverpoint in the south of Tenerife. This was in regards to the assets and companies of this corporate group, present in 16 jurisdictions. Transactions were found to be “completely suspicious”.
When Silverpoint Vacations declared itself in bankruptcy proceedings, its assets (goods, rights and resources of the company) amounted to 14 million euros, although almost half corresponds to short-term debts. The debt that has been computed to date is doubled, 28 million euros, although the figure may increase.
With the accounts of Silverpoint Vacations practically empty, Viking Consultants focus on trying to link all of these operations and societies to unravel this complex network. The result of a strategy that “would have been impossible without the participation of advisors ”, make the assets that, in their opinion, have fraudulently left the company, emerge, with the objective that the clients who claimed and won in court can recover their investments after years of judicial battle.
Three Silverpoint Vacations clubs continue to operate today managed by Excel Hotels and Resorts.