Bluebeard's Castle Litigation

[somerville Senior Member Find all posts View Profile Close somerville]

This settlement was reported on Street Talk today:
» US VIRGIN ISLANDS: FEB. 8

"This is still pending court approval by the bankruptcy judge in
Pittsburgh, PA, where a settlement hearing will be held February 14, 2008.

The highlights of the Settlement are:

* The Bluebeard’s Castle Associations (the HOAs) get the entire property, including the undeveloped land.
* The HOAs get the leases (so there is some income from the eateries and such)
* The HOAs get their $1.2M bond money back (FF/Wyndham got the court to agree that the HOAs had to pay a monthly bond payment of $40K to take care of common areas.)
* The HOAs get $17.5M in cash (with $5.375M going to the lawyers)
* Equivest St. Thomas Inc. (ESTI) has ceded their voting rights to appoint directors or vote for directors. They have a say on other issues, as they are owners, but they cannot use their block of votes to elect sympathetic owners."

It looks like timeshare owners can successfully challenge the developers!

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

I received information about this in the mail - and there is discussion about this on the Bluebeard's BeachClub owner group....I am still not sure how this will affect owners at the BeachClub and Elysian - the other 2 former Equivest Properties.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

It looks like timeshare owners can successfully challenge the developers!

It seems when a resort has an elected owner Board and they actually act in the owners interests rather than kowtowing to a management or developer they will usually end up having successful challenges to the Developer(s). Most of what Developers think they write into the documents or rules and regs often doesn't stand up to challenge as it clearly favors them at the expense of the owners. It is up to the owners through the Board to have the guts to stand up to it and make them back down.

I already posted OY some other thoughts.