The Aruban Resort & Casino at Eagle Beach Fractional Cooperative Association
J.E. Irausquin Blvd. 248 P.O. Box 4251, Oranjestad, Aruba
May 24, 2010
Dear Members,
The sale of the Aruban to the Icahn group has assured us a great future. The problems created by KL have apparently instilled fear into many owners that our future is not secure. In talking with the top executives, they love their investment, feel they made a terrific deal on the property and are excited and ready to proceed. It still is Aruba and with that comes the time requirements for the paperwork needed for the closing.
In an addition to the aforementioned delays, the bondholders Wells Fargo terminated our management company Royal Resorts. A new temporary agreement was signed, but it has caused a severe cash flow challenge for the resort. The new Icahn Company, Abura Development Corp. understandably wants control of the resort and expenses. They want to authorize all the disbursement of funds. The loan is in the name of the COOP. The liability for the loan remains with primarily with the plaintiffs. My name is on the loan as all the plaintiffs gave me the power of attorney. I refuse to allow any disbursements in the future if the loan is not backed by collateral. The maintenance fees backed the collateral for the loan.
We are very surprised that many of the AMF funds have still not been collected. Because of the auction and the problems created for the management company, the Board has chosen to waive the late fee until close of business May 28, 2010. On May 29, 2010 the 25% penalty will be enforced. The Board has instructed Royal Resorts to aggressively seek collection, to impose the 25% penalty and to immediately commence the procedure of foreclosure. I have spoken with the Icahn Group representative and they understand our position.
I strongly encourage you to take advantage of this extension of the late fee. It was only because of the circumstances surrounding the sale that it was extended. We hope that no owners will lose their weeks for non-payments after coming so far and nearing the end of this remarkable journey. Pay may be made by wire transfer or by credit card authorization forms available on the website www.aruban-resort.com. Only Master card and Visa are accepted.
We need your support now more than ever. Our future looks better today than anyone could have hoped. We all have been beaten up emotionally and financially over the last ten years – first by OHEM, and then by KL. You have the financial obligation to pay your share. I sincerely hope the majority of owners take advantage of the next five days.
Regards,
John Cole, Treasurer