Comments on recent notice of claims bar date
Warren Agin
In response to the recent notice of bar date, a large number of people have asked for instructions on filing claims. First, as a Chapter 7 trustee, I cannot provide legal advise. However, I do want to provide some guidance.
Others have asked for information about what happened to Harbor Hill, since they might not have received earlier communications from my office. I ask that they look at my status report to the court (http://bit.ly/2ghuZHk) and the motion for authority to enter into a termination agreement (http://bit.ly/2hcLkKY), which contain a detailed explanation of both the problems faced by Harbor Hill at Provincetown, and explain why terminating the timeshare and selling the real estate is the only feasible option for the association.
The termination procedures I've asked the Court to approve provide rules for handling distributions to interval owners. These rules would remove the need for most owners to file a claim with the Court. I asked the Court to extend the deadline for filing such claims to March 31, 2017, specifically so owners would not have to file a claim this early in the process. So, there is no need for you to file a claim at this time. I ask that you just note the deadline, and wait for further instructions as the case proceeds.
The termination agreement provides, in accordance with Massachusetts' state law, for excess funds to be distributed to interval owners according to their percentage interest in the association under the timeshare's master deed. These distributions will be made equally, subject to a deduction for those interval owners whose payments to the association are not current. Thus, there will be no need to file a proof of claim simply because you own a unit. Also, we will make adjustments for those interval owners who paid their 2016 annual fee, but lost the use of their week due to Harbor Hill closing its doors. A few owners paid their 2017 dues in advance, and they will need to file a proof of claim for those advance payments.
So, for most owners, there is no need to file a proof of claim. You will be able to provide information about your payments in the forms being provided in connection with the termination process. Those are being mailed to all unit owners, but if you like you can also download a copy of the whole package at http://bit.ly/2hqN5Fk.
Information about distributions will be provided before they occur, and owners given an opportunity to request corrections, but this part of the process will need to wait until we complete a sale.
I will be filing objections to proofs of claim that are not consistent with the processes being set up. In particular, I will be filing an objection to any claim seeking recovery of the amount paid for the timeshare interval in the first place. Everyone in the association has lost the use of their interval, and the amount owed to an owner of a timeshare interval when the project is sold is, under Massachusetts statute, a percentage interest after the payment of the association's expenses.
Regards,
Warren E. Agin,
Chapter 7 Trustee