(CNS): IT millionaire Jerry Beck, who successfully sued the developers of the Margaritaville Resort (now Palmar) on the West Bay Road, is seeking the winding up of MV Cayman Ltd, which owns the resort. Known as HHG Cayman Ltd when it redeveloped the Old Treasure Island Resort, MV Cayman Ltd is owned by Hugh Hart, a wealthy Jamaican-born lawyer, politician and businessman, and now owes Beck more than US$2 million.

According to a winding-up petition filed in the Financial Services Court yesterday, MV Cayman failed to pay that debt by 10 December, as ordered by the courts following a civil case last year. As a result, Beck is asking for the company to be wound up and for Chris Johnson Associates to be appointed liquidators.

HHG was one of a number of developers that the previous government granted significant duty concessions to after it purchased and then began the redevelopment of the well-known Seven Mile Beach resort.

The resort closed in 2020 due to the lockdown, but it was apparent that it was in trouble long before the pandemic struck when it failed to pay a $200,000 CUC bill and local contractors began complaining that bills were not being paid. It is understood that several former employees are also still owed pension contributions from the company.

Beck, however, is by far the largest creditor, having exercised his right in accordance with the investment agreement he had with HHG (and then MV Cayman) that the developers buy back several condo units he held. But when the hotel business venture began to fail, MV Cayman did not meet the terms of the deal.

When he sued to get his money back and won, the company should have paid back the $2 million last month. Instead, the company filed for a stay on the payment of the debt, stating that it was suffering from “continued impecuniosity”, and as a result could not pay the debt now or in the foreseeable future.

The court documents revealed that there was less than CI$9,400 in the company’s Cayman Islands bank account. The court refused the company’s application, and on Monday Beck’s winding-up petition was filed. A hearing is scheduled for March.

If Russel Homer and Karen Scott from Chris Johnson Associates are appointed as liquidators, they will be tasked with investigating the affairs of MV Cayman and looking for any money the company or its owners may still have here or elsewhere.

The resort was reopened as the Palmar Beach Resort Grand Cayman in October 2020 but closed in October last year. It appears that it has not reopened as calls to the listed number go unanswered. Ultimately, the resort will almost certainly have to be sold in order to meet its debts and obligations. Whether local taxpayers will see the return of the CI$1.7 million in concessions remains to be seen.

See the details of the petition and other related cases on the Judicial Administration website’s public access register here.