The company was put into liquidation when the company’s owners realized that paying off court-awarded claims would surely cost a substantial amount of money. The appointed administrator’s key responsibilities include conducting a financial audit and assessing whether the company can be reconstructed and continue to operate; this seems to be currently under process. Since there are so many complications in this situation, the administrator’s duty is not simple.
Usually, the process to either declare the firm insolvent and begin the wind-up process that ends in bankruptcy or to try to salvage the company is pretty straightforward. As we will see, the situation with Silverpoint is far from straightforward.
Why developers continued for so long to provide timeshare contracts that were against Spanish law is the first thing that continues to baffle us. There must have been a day of reckoning at some point, and the people in charge in the ivory towers of the developer’s headquarters must have known it. Not just Silverpoint, but all creators that opted to disregard the law, have most definitely reached that day. The Resort Development Organization (RDO), the European timeshare industry’s trade association, did not help matters by originally advising its members that the Spanish court system had erred in its interpretation of the law. however, we now know that this was not the scenario.