Quinta do Lorde. Madeira Regency Palace latest. Novo Banco.

Quinta do Lorde debts

Hot on the heels of the Madeira Regency Palace debacle comes the latest details of the financial plight of anther tourist development which has been struggling since its inception. The Diario yesterday reported on Quinta do Lorde, located in Canical as you head out to Ponta de São Lourenço, having a total of 90 creditors being owed a combined €114 million. Banks lead the list of creditors with Novo Banco in the headlines again, owed €48 million, and BPI €44 million. Also figuring highly in the list of claimants is the de Sousa family, who have been instrumental in this project from the start, and the construction company Tamega, which the Diario speculates is also in difficulties.

The most recent developments with this ill-fated project have been covered on the blog earlier this year, in April and May, and a search in the box on the right-hand sidebar brings up many more references.

BES/Novo Banco

Image result for novo bancoWith Novo Banco being involved with both the Madeira Regency Palace and Quinta do Lorde, it has to be asked what these debts are still doing on their books. When BES was rescued last August, Novo Banco was supposed to emerge as the “good” bank, whilst all of the risky “bad” debt was transferred to the Bank of Portugal.
Now Bank of Portugal is owning up to there being problems resulting from the decision to keep certain loans at BES when the broken bank was divided into two parts. They are currently trying to offload Novo Banco, but the three buyers that are interested have offered amounts varying between €3 billion and €4 billion, well below the €4.9 billion needed to pay back the money advanced by Portugal’s banks and taxpayers during the rescue. There are now also several lawsuits in progress’ subsequent to the botched rescue of BES, and the Bank of Portugal has admitted that ‘there may be hundreds of millions of euros payable to creditors,’ including Goldman Sachs, New Zealand’s state pension fund and 2,500 individual depositors. The legal processes may drag on for years, and in these uncertain circumstances bidders for Novo Banco have gone in low and may not raise their bids as Bank of Portugal had hoped – they are hoping to conclude the sale at the end of this month.

Regional debt

Still on the subject of debt, the Diario yesterday also reported that the total public debt of the Autonomous Region of Madeira was €6,149 million as at December 31, 2014, according to figures presented to the Regional Legislative Assembly. Whilst this does seem a lot for a small island, it is heading in the right right direction – €487 million less than at the end of 2012, and €211 million less than the same point in 2013. Steady progress considering that public spending continued largely unabated during this period.

Madeira Regency Palace latest

Approaching 100 “Comments” and updates on the closure of the Madeira Regency Palace continue to accumulate on a previous post: http://madeiraislanddirect.com/blog/2015/04/regency-palace-hotel-to-close/#comment-211171

The photo below is representatives of the hotel workers union, Sindicato da Hotelaria, protesting in Funchal last week. From the comments posted, there appears to be two main themes developing: The first is the lack of communication from the administrator to the members; the second questions the legality of the Madeira Regency Palace timeshare sales, particularly “flexiweeks”.

12 thoughts on “Quinta do Lorde. Madeira Regency Palace latest. Novo Banco.”

  1. Something seems to be happening with the webcams. The Ritz cam is up but just pointing to the same spot and the Marina cam is back but lots of interference on the picture.

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  2. We have two floating weeks at the palace apart from am email from ligia and a sarcastic one from marilyn we have heard nothing. Does anyone know who the administrator is and how to make contact

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  3. no one is interested in the members at the regency or how much monry we have lost.we have 2weeks in july which of cause we have lost .so no holiday this year.

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  4. Linda,

    This information came to me on the 17th July from Marilyn & Ligia, using a new email address “Former MRP”. The Judicial Administrator is Dr Orlando Carvalho and his email address is oacarvalho@ojc.pt and I got his address from the internet. Rua do Vilarinho. 5-1. 2890-068 Alcochete, PORTUGAL. You can check this address yourself, just to confirm it is correct. The Trustees for the MRP timeshare are First National Trustee Company,International House,Castle Hill,Douglas, Isle of Man. IM2 4RB. email address iom@fntc.com .This email address came on the letter head with my original Timeshare contract, which was 13 years ago, so may not now be current. As you have floating weeks not original timeshare contract, the Trustees may not be relevant in your case. There is another blog running that you may wish to read, on this site. On this page there is a link printed in blue above under the heading Madeira Regency Palace latest.If you click on this link there are about 130 messages from MRP members and other people regarding the plight of the Madeira Regency Palace.

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