Mullet Bay moratorium
to end on September 4
PHILIPSBURG--The flagship resort in Mullet Bay was decimated by Hurricanes Luis and Marilyn in 1995. Since then the resort has lain in ruins whilst SunResorts Ltd. N.V. and the Mullet Bay Apartments Association (MBAA) fought in court over its future.
The peace will finally be signed on September 4 when SunResorts and the creditors ratify a settlement in which the apartment owners will be sell their property for prices ranging from US $44,000 to $110,000. A judge will then officially approve the agreement.
SunResorts was granted a moratorium on payment in April 1997, which was renewed several times, most recently on March 7, 2005. Parties agreed on July 14 to settle the matter and to terminate all other court cases that were still pending in St. Maarten and in New York.
The majority of the apartment owners and 17 other creditors voted in favour of an agreement submitted by Mullet Bay and its trustees. Only seven apartment owners voted against the agreement.
The settlement with the 263 Mullet Bay apartment owners consists of a sale price of US $110,000 per two-bedroom suite, $66,000 per one-bedroom suite, and $40,000 per twin-unit apartment.
In addition to the cash payment, MBAA will also obtain a release from SunResorts for its claim of $9 million. SunResorts loaned this sum to the rental pool years ago for the refurbishing of the units. On top of the $9 million, SunResorts will also pay $3 million interest.
The apartment owners will also receive $10,000 in damages for a two-bedroom suite, $6,000 for a one-bedroom suite, and $4,000 for a twin-unit apartment.
This payout will be in exchange for a transfer to SunResorts of all the unit owners’ rights, titles and interest in and to the units, the land, Foundation for Protection of Tourism, the litigations, insurance proceeds, funds in Court and any other claims asserted by MBAA.
The development came after a court ruling of April 11 in which nine apartment owners and their lawyer Jelmer Snow successfully convinced the judge to order the defendant, Foundation for Protection of Tourism, to cooperate with the rebuilding of Building 90, at the edge of the Mullet Bay beach. Seven of these apartment owners voted against the accord.
Trustee Arnold Huizing said he was very pleased with the agreement. “Now there are no obstacles anymore to start cleaning up the dilapidated resort and to begin the re-development of the area,” Huizing told The Daily Herald.
Attorney-at-law Richard Gibson Jr. said SunResorts considered the accord “a positive development for the whole island.”
MBAA Chairman John Schepisi had said earlier the settlement was “in the best interest” of the owners.
St Maarten vacation rental
