Canarian Legal Alliance has been informed that Excel Resorts and Hotels, the management company for Beverly Hills Heights, Beverly Hills, Hollywood Mirage and Palm Beach Tenerife, have now been taken over by Ona Group.
Ona Group is a hotel and resorts management company who have many interests in timeshare resorts around Spain.
This is the email received by one of our clients:
The Members’ Committee have been informed that Ona Group, a Spanish management company that specializes in timeshare resorts, has bought the shares of our management company, Excel Hotels & Resorts S.A.
As such, ONA now mange our resort but as Excel Hotels & Resorts, with the same staff as before as there has been no change to the structure. Although the committee were informed of the change of ownership of our management company, the committee have not been involved in this decision as this does not fall within the committee’s remit.
Please see the official communication from the Ona Group on the link below:
Excel Hotels & Resorts S.A.
Many of our clients will now be asking the question “How does this affect my claim?”
To put it simply, the acquisition of one company by another does not imply the loss of our client’s rights. In Spanish law, the acquisition of a company includes the transferring of a series of elements, including both its legal liabilities as well as their assets. Therefore, should a company acquire another one, it would have to answer to these legal liabilities, which in turn produces the following effects for clients currently in a legal dispute and those who have already obtained a favourable ruling.:
1. In relation to the transferring of those legal responsibilities acquired, these also include that of third parties. In other words, they also have to answer to those debts, credits and contracts shared with third parties.
2. With regards to the credits obtained, its transferring presents no problem since once an agreement has been reached, only communication with the debtor is required, in accordance to the Article 347 of the Commercial Code.
3. Debts are different as the acquirer, requires the consent of the creditor that he accepts the debts found in said company. Essentially this is can be seen as an insurance policy in the event that the purchase does not become official.
4. In relation to the contracts signed with clients or suppliers, these will only remain valid should the acquiring company give full compliance.
Consequently, the acquisition of one company by another is also governed in Spain by the Universal Succession System, regulated under the Law 3/2009. This law regulates the structural modifications of commercial companies, with Article 21 being of particular interest.
Article 21 Responsibilities of partners in regards to social debts
1. The partners who assume the acquired companies’ debts/liabilities, will also have to respond to those debts/liabilities created prior to the agreement being reached.
2. Unless the creditors expressly agree to eliminate their debts obtained against the acquired company, the new owners have a legal obligation to repay said creditors for a minimum period of 5 years.
If you have any concerns, please get in touch with us and our lawyers will be able to explain the legal position on this matter. But rest assured your interests as our clients are at the forefront of our efforts.