Panama blue skies dream becomes black cloud

AS MANY AS 1,400 PEOPLE who invested between $5,000 and $18,000 each in  a time share plan of  Blue Vacation  an R.G. Hotels, subsidiary could be seeing  their role as “partners” evaporating as they face  a long legal battle with the company.

They paid up front between between $4 million  and 7 million dollars  to enter the category of “partners” in projects administered by R.G. Hotels, now bankrupt, reports La Prensa.

They were  to have access to  hosting centers in the Pacific beaches and the province of Chiriqui, under the rules of contracts that were valid in some cases up to 20 years.

But with the bankruptcy of R. G. Hotels and Casa de Campo Farallon, what they saw as an investment has become a legal dispute over the very long term.

They have begun to organize to present to a meeting of creditors in Cocle on December 29 and claim the money they paid without receiving the promised services.

Initially it was estimated that between 700 and 800 people had bought into the time share plan but now the number affected has been projected  affected  has been projected to be  between 1,200 and 1,400

Considering the low price at which the packets were sold and the number of people who would have participated, the total amount of the vacation plans could be between $4 million and $7 million. They were still selling the programs until last year,

Things got complicated this year when R.G. Hotels  began to reflect a difficult financial situation.

Those who bought  into what promised to be a hotel empire have said  that the former owners filed a false economy statements  since 2012, when they issued bondsfor a total of $30 million, including financial statements and appraisals that did not reflect reality.

Recovering  the money owed is the great dilemma for all concerned., Bankruptcy proceedings started  October 21, 2015, but with retroactive effect from July 31, 2012, reports La Prensa.