On the 29th March 2012, the Joint Liquidators of Leeward Isle Resorts Ltd (in Liquidation) (“LIR”) applied to the High Court (Anguilla) for permission to sell and transfer the business and certain assets of LIR to the successful bidder at a private sale process initiated by the Joint Liquidators.
On the 30th April 2012, the Honourable Jaques J. (Ag) adjudicated on the Application by the Joint Liquidators and decided that the Joint Liquidators would be “permitted” to sell the assets to the Hickoxes for US$ 10.3 million, notwithstanding that the Villa Owners had offered US$ 10.4 million.
Despite the incongruity of this ruling, and whilst being aware of the higher offer by the Villa Owners, the Joint Liquidators proceeded to sell the relevant business and assets to the Hickoxes, notwithstandingthere being no obligation for them to sell at the lower offer. (Indeed by the time the Joint Liquidators were actually able to agree terms of sale with the Hickoxes, on the 2nd May 2012, the Villa Owners had in fact put forward an offer for US$ 11m for the relevant assets, which offer was again refused by the Joint Liquidators.)
In the face of this anomalous ruling by the court, and the subsequent decision by the Joint Liquidators to proceed with a sale to the Hickoxes in any event, Brilla appealed the matter to the Court of Appeal on the 18th May 2012. Simultaneously, the Villa Owners made an application to the High Court (Anguilla), on the 11th June 2012, claiming an Orderto set aside the purported sale of the assets by the Joint Liquidators to the Hickoxes. The Hickoxes, having been served with both the Appeal and Application, were at all material times fully aware that the purported sale of the relevant assets was being contested and the reasons therefor.(It is worth noting that, for reasons quite separate from Brilla’s appeal none of the lands and buildings at Cap Juluca was ever transferred to the Hickoxes and indeed such lands and buildings still remain in the registered ownership of LIR.)
On the 24th April 2013, the Appeal came before the Court of Appeal with a panel consisting of three (3) justices of appeal. The Court of Appeal reviewed the decision of the Honourable Jaques J. and unanimously decided that the judge’s decision had been “irrational” and was one that “no reasonable judge could have made”. Furthermore, the Court of Appeal found that the judge had failed to give reasons for his decision, which in the circumstances was a “fatal flaw”.The Court of Appeal thereupon duly declared that the decision of the judge “could not be upheld” and accordingly that the order granting permission to sell the relevant assets to the Hickoxes must be Set Aside.
The net result of the ruling by the Court of Appeal is that the permission granted to the Joint Liquidators to sell the relevant assets to the Hickoxes has been set aside. The Villa Owners have consented to a stay of execution of the decision of the Court of Appeal for 21 days, so as to allow the Hickoxes to consider their position, at the end of which period the Villa Owners will return to the High Court (Anguilla) for an order setting aside the sale of the relevant assets to the Hickoxes.
As matters currently stand, all the assets of LIR (the villas, the lands, the facilities etc.) all still remain vested in LIR – same never having been transferred to the Hickoxes, due to their inability to establish to the satisfaction of the Government of Anguilla any entitlement to an Alien Land Holding Licence. Upon any such sale of assets by the liquidator(s) being set aside by the court, or indeed by the the liquidator(s) themselves, the relevant assets may then be properly sold to any suitable investor who possesses the necessary credibility, financial resources and professional track record to obtain an Alien Land Holding Licence and to take Cap Juluca out of its current decline and return it to its position as the premier resort in the Caribbean.
Editor’s note:
The Anguillian has been requested to publish the above press release which represents the Villa Owners’ interpretation of the ruling of the Court of Appeal.
