There is an “emergency” board meeting scheduled for 7:00 PM EST Tuesday, December 16th via teleconference. Late notice is due to a need to timely respond to an offer made by the SBA at a mediation held last Friday Dec. 12th.
What was the offer made by the SBA? Or is this a secret?
It isn’t exactly a secret, but it has been kept confidential until the outcome of the negotiations was final. We tried to get several hundred thousand dollars in back fees from them, they tried to get a couple of million dollars from us on largely bogus claims that we sold rooms belonging to them without proper authorization. As it develops, although we DID have an agreement with the SBA attorney to sell timeshares as long as we replaced them with like room/weeks, we did NOT ever get authorization from the court as required to do it. Further, prior management FAILED to properly register the transfer of those properties with the government clerk on St. Croix as required. It was a sort of a draw, so it ended up that the SBA gave us ALL of the rooms without exception, and foreswore any claim to any rooms that had been sold, while we gave up claims for back maintenance fees. In short, neither side paid the other any money, but we ended up with control of ALL the rooms. Now, we are on the path to a deal for a new lease with the GVI. We aren’t very far down that path, certainly, but at least we need have no further dealings with the SBA, and are firmly in control of all non-owned rooms.