Further to Club La Costa’s email dated 30 July 2021, which was also published on the Resort Development Organisation (RDO) website, we want to clarify that the message presents a distorted version of the actual position. In our view, it is designed to alarm consumers and create confusion for those who are pursuing claims in the Spanish courts.
As you may be aware, Club La Costa (UK) PLC entered administration in the UK in November 2020. In December 2020, it filed for liquidation of its Spanish branch, “Club la Costa (UK) PLC Sucursal España”, which forms part of the PLC company.
In December 2020, liquidation procedures were also opened for several other Spanish companies in the group, including Paradise Trading and Continental Resorts. Management of those companies was subsequently placed under the control of a Spanish administrator appointed by the Spanish Mercantile Court.
From the point at which the companies entered administration, any new cases against Club La Costa (UK) PLC and CLC Sucursal España became the responsibility of the administration process in the United Kingdom. However, existing cases against these companies were properly commenced in the Spanish Civil Courts. The Mercantile Court ruling simply confirms this position: pending and new claims should not be lodged with the Spanish Mercantile Court, but instead submitted in the UK.
We can confirm that every one of our clients has been correctly reported into the UK administration procedure, and we continue to report new clients’ cases in the same way. Against that backdrop, we see no justification for the CLC Group circulating information that appears intended to create unnecessary alarm and uncertainty.
We continue to monitor each step taken by the CLC Group, particularly where it appears aimed at avoiding responsibility for the hundreds of court rulings made against them.
PLEASE NOTE: THIS LATEST RULING BY THE MERCANTILE COURT DOES NOT AFFECT ANY PREVIOUS JUDGMENTS MADE BY THE SPANISH COURTS, NOR DOES IT AFFECT ANY ONGOING PROCEEDINGS IN THE SPANISH CIVIL COURT AGAINST Club La Costa COMPANIES.
In addition, over the past few months we have taken substantial legal steps to ensure our claimants are recognised as majority creditors in the Club La Costa UK administration. This has resulted in the appointment of a new creditor-appointed administrator (FRP) to replace the court-appointed administrator (BDO). We recommend you follow the link to review the factual position and our work to ensure our clients are properly represented within the administration procedures in Spain and the United Kingdom.
If you have any questions about the position of your claim, please do not hesitate to contact us.
