Dear Members, It appears the attempts to resolve the situation quickly is very dim. It will be very difficult to take any action until a new Board of Directors is put in place. In the bankruptcy proceeding only the Operations portion filed for bankruptcy. the other portions of the resort did not.
By doing this the Government apparently has no right to step in. No action can be taken until a new Board is elected. I was ordered by the Court to present an agenda to my Attorney by Monday with an agenda and a list of qualified applicants. I am in the process of doing that now.
We will be required to follow the rules of the Bylaws. A General Meeting will be announced. We know a quorum will not be met at that meeting. Two weeks later the second meeting will take place and a majority will elect the new Board.
We will have to do a mailing and try to inform all members of the importance to cast their proxy votes.
We also had our Attorney check the COOP escrow account for the Maintenance Fees. It has a zero balance. This means the Board failed to follow the directive to transfer the funds collected to date for 2010.
KL International has told the Court, they have no money, will pay no bills and the employees will not be paid. it also appears as of today, there is no reason to expect the resort will open anytime soon.
KL was not able to raise additional financing and was given every opportunity to do so. The court case we had against them really in no way had any effect on this outcome. It was inevitable. What it will do is to offer a solution for the future. I will try to get all members information on relocating procedures.
Two Curators were appointed to handle the bankruptcy. Attorneys Swaen & Kloes are now in charge of the situation.
I am sorry that no quick resolution appears now. Things could change, but results that we had hoped for did not happen. The responsibility for this lies with the Board of Directors that were in place at the time of the General Meeting. I do not believe the new board was ever recorded at the Chamber of Commerce.
