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HomeMediaDH | Pasanggrahan Guest House obtains bond to avert auction

DH | Pasanggrahan Guest House obtains bond to avert auction

Entrance to the lobby of Pasanggrahan Royal Guest House.

PHILIPSBURG–The Pasanggrahan Royal Guest House, one of the registered monuments in St. Maarten, has obtained backing from a financial guarantee bond for up to US $8 million from Stockton Fuller and Company in Nashville, Tennessee, to see the renovation of this landmark, which was severely damaged in the passing of Hurricanes Irma and Maria in September 2017, through the next three years.

With the financial assistance of Stockton Fuller, Pasanggrahan averted a public auction of the property, which was set for December 10, at 10:00am.

HBN Law and Tax attorneys Stan van Liere and Charles Rutte requested the Court of First Instance to grant a temporary suspension of payments (“voorlopige surseance van betaling”) with a cooling-off period (“afkoelingsperiode”) during which third parties may not take recourse against property belonging to the estate.

The court agreed and consequently, the auction of the Pasanggrahan historical landmark located between Front Street and Boardwalk Boulevard has been called off. Pasanggrahan said it will use the coming period to further restructure its business and work on a solution with its creditors.

In a statement on Wednesday, Pasanggrahan management thanked Van Liere and Rutte for their “hard work” on behalf of Pasanggrahan through the Court of First Instance.

Pasanggrahan also thanked Member of Parliament (MP) Christophe Emmanuel and the community of St. Maarten for their “show of support during this struggle.”

The guest house owners called Emmanuel their “hero” for his public support for the property. “I am very happy to hear that this vital monument was saved. I would have liked it to have been government, but again we failed to show up for our people. All you need is to find the conviction and courage to stand for what is right and stand for what is important in your country for your people. I am happy for Pasanggrahan,” the MP said.

According to management, one group of interested investors was rumoured to be planning a bid for the monumental building as it allegedly wanted to construct a “casino village” in Philipsburg, while another group reportedly also wanted to place a bid.

The monument and its hotel rooms were severely damaged in the 2017 hurricanes and have still not recovered. These factors, coupled with a pending court case for damages claims from the hurricanes and the impact of the global economic downturn caused by the coronavirus COVID-19 pandemic, put the guesthouse in a financial predicament of being auctioned by Development Bank Netherlands Antilles OBNA.

Bron: Daily Herald

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