What You Really Need To Know About ELPP Investments?

Investors nowadays are always in the lookout of profitable property investment deals which can give them fruitful returns. But there has been instances where investors got trapped in unprofitable property deals or company participation schemes and didn’t even know a way out. The Excel Overseas Lodging Participation Program (“ELPP”) seems to be a similar problem for investors and appears to be in serious trouble too. 

What is an ELPP? 

Those who invested in Excel Overseas Lodging Participation Programme (ELPP´s) sold by Silverpoint (formerly Resort Properties), were the existing customers and they were promised 6.05% fixed annual return after full repayment of their capital, which they hardly received. Each client invested approximately €40,000 for one ELPP; some clients bought more than one after receiving their first interest installment as they believed it to be all above board, so invested in second.  In total over 300 of these ELPP´s were sold, a very handsome €12 million which now seems to disappear.  Investors were even told that they were investing in rental rights in luxurious resorts such as:

• The Americano Hotel, Daytona Florida
• The Dream Hotel, Phuket Thailand
•  “The Club Lodge” Forest lakes Country Club, Nova Scotia Canada
• The Lodge Hotel, “Twin Lakes Country Club”, Lancashire

 

 Appointment of insolvency practitioners as Provisional Liquidators

To examine this issue, the high court of the British Virgin Islands has appointed independent insolvency practitioners as Provisional Liquidators to Excel Overseas Holdings Limited. This is followed from latest liquidation of the company’s ultimate shareholder Landcastle Holdings Limited.

It is reported that “Excel does not have sufficient funds at this time to meet its payment obligations under ELPP investment”. Though it will be soon cleared if Excel will go into complete liquidation but it may take a longer time to figure out what amount, if any investor will recover. 

Ways to fix it? 

If you are an ELPP investor, you can contact Nordic Consulting CI to investigate the actions taken by courts in Spain. The company has experienced Tenerife Lawyers Silverpoint, who are well versed with the technicalities in this case and how it can be resolved effortlessly.