PI resort settles credit union debt

By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net THE Paradise Island-based Club Land'Or resort has moved to settle its debt with another creditor, a credit union executive yesterday confirming to Tribune Business that the property had "rectified the situation" and was current with employee salary deductions. Club Land'Or had last summer faced the threat of legal action relating to thousands of dollars in employee salary deductions allegedly taken but never deposited to their credit unions accounts. The situation was brought to the fore when several employees discovered they were unable to get money for vacations and back-to-school shopping. The National Co-operative Credit Union's (NWCCU) financial controller, Shernell Gardiner, said Club Land'Or had resolved the matter, telling Tribune Business: "That is a position that they were in, but they have since rectified that. "It's difficult for me to say how much exactly was owed to me because they do deductions, so all I know is that they wouldn't have paid me for a particular month, but I wouldn't know what the amount is. They are now current. They have addressed it periodically. I just received two cheques from them this week." Earlier this week, Club Land'Or agreed to settle a legal dispute with a former Bahamian employee creditor after it was faced with a winding-up petition in the Supreme Court. The winding-up petition had been filed against the Paradise Island property on May 26 last year. It is understood by Tribune Business that Camille Bain, a former employee of the property that sits at the heart of the Atlantis marina, and is the first sight for motorists entering Paradise Island via the 'on- bridge', had secured a judgment for compensation from the Industrial Tribunal. After that judgment was allegedly not honoured, her attorneys filed a winding-up petition in an effort to secure her compensation. The case was another bout of unwelcome publicity for the Paradise Island-based vacation club and hotel, and may not be the end of the property's legal battles with Bahamian creditors. Tribune Business understands that several other Bahamian creditors and their legal representatives were present when the winding-up petition was settled before the Supreme Court. Apart from the credit union, the other creditor institutions represented were the National Insurance Board (NIB) and the hotel industry pension funds, sources close to the matter told this newspaper. NIB sources confirmed that the social security system was among the creditors who had appeared for the petition, and was owed a "substantial" sum, although director Algernon Cargill would not comment on the matter. Attempts to reach Club Land'Or's management and its attorneys for comment proved unsuccessful yesterday. Club Land'Or is currently not being "actively marketed" to potential buyers, having been listed for sale with H G Christie for two years. During the two years that Club Land'Or was being actively marketed, its price was dropped from $43-$42 million to $39 million, something confirmed by realtor John Christie. In a statement sent to Tribune Business in September 2011, Club Land'Or said it was "not sold, and further, will not be closing".


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