I got this letter by e-mail today:

Canet en Roussillon, 15th of January 2010

Dear Sir, Madam and co-owners,

For the last few months, CELA’s group has been facing cash flow issues, which in the short term did restrain us from making income rental payments in due time.

CELA group dedication to make payment on time has been our main focus. Today, for the first time in the group history, we are unable to respect our commitment to you.

Those of you who have been with us for a long time know it very well...

However, in order to explain the current situation and the main reasons behind it all, we would like to pass on, in a transparency way, the following information.

- In 2007, prior to the Global Financial crisis, CELA HOTELS – RESORTS – SPAS had many projects on hand and decided to set up a legal structure to ensure a smooth running of many planned operations. Today, with a 13 Million Euros capital share, we’ve created the CELA Finances Holding. The implementation of this new chapter, essential to the group wellbeing and to strengthen the value of our assets to the detriment of an immediate liquidity, required the input of important funds contribution from our shareholders equity.

- On the other hand, large numbers of individuals, partners and companies have been “drastically” hit by the financial crisis. The outcome of the matter has as you might expect put many projects on hold and delayed due payments from debtors. Consequently, payments delays have multiply by four our need in cash flow.

In order to face our financial commitments, we’ve approached, in anticipation, financial institutes to help us going through this rather tough situation. Surprisingly, we only received partial support from their side.

- With almost 40 Million Euros worth of assets, and a strong partners and loyal customers’ network, The CELA group is built on solid grounds. 2009 season results were overwhelming, and 2010 forecast looks quite impressive so far. However, financial institutions will only help us once we reverse the situation on a positive way.

- As a result, debt recovery and financial planning, with the banks, took longer than expected, hence why we couldn’t keep you up-to-date with very much awaited answers from the banks.

Today, we’ve decided to back ourselves up and rely on our own resources rather than waiting for banks to respond which as we know will not be in the near future. Thus, CELA’s shareholders have decided to dig deep by providing extra personal funds for the group.

2010 will be the year of savings, so we can ensure the continuation of the group adventure. No “new” investment, rigorous staff management and the possible revision of former lease agreement in order to minimize costs having an effect on our activity.

From the different issues raised above, and according to our current resources, this situation has led us to present before you the following 4 alternative solutions:

1. Payment instalments, 25 % of the 3rd and 4th quarters carried out on four quarters in 2010 (January-April-July-October).

The first transfer will be made upon reception of the filled coupon below.

2. Imputation of your rental income on holidays, valid on all the CELA resorts on preferential conditions.

This proposition, first vocation of the tourist residence, which is not only a financial product, has been frequently requested by our co-owners.

3. Imputation of your rental income on the Time-share fees.

Valid for time-share holders only.

4. Termination of your lease on February 15th, 2010.

According to the cancellation clause which appears in your lease.

To answer any questions or queries you may have, we’ve put a new department in place so they can answer your needs and deal with your requests. You can contact them either by:

 By e- mail : srp@cela.fr

 By post, at the following address :

CELA HOTELS RESORTS SPAS,

Service Relation Propriétaires

Malibu Village, les hauts de Canet,

66140 Canet en Roussillon

France

We really hope this letter answered some of your questions, in the meantime if you need further information, please do not hesitate to contact us.

Yours Sincerely,

CELA HOTELS RESORTS SPAS

Service Relation Propriétaires

 

dgusic40193.7950347222

Comments

25 January 2010

I have sent you a PM; look forward to hearing from you. Any other Alenya owners out there???

23 August 2010

Dear JuanAzur,


I have not seen a post from Mutley on this forum - how can I connect.


Arctic

22 August 2010

You should contact mutley on this forum and ask him how he dealt with his problem

22 August 2010

Dear All,


We have just joined the forum. We are leaseback owners at Malibu Village. To date, we have received 2 x 25% payments relating to 2009 Q3 & Q4 rent arrears. We have received rent payment for Q1 2010 - but only , we figure, because one of us pestered CELA offices in person during June 2010. CELA paid by cheque.


Our thoughts on the matter. As many leaseback owners as possible should arrive in Malibu on an agreed date (Sept 2010?) and protest at the CELA offices. From experience, we know that CELA dislikes noisy protest.


Arctic

7 June 2010

Hi greenfintry - are you in touch with the rest of the British owners at Orelle yet?? If not, leave another message on this blog and I will give you all the necessary details. FYI, we are presently joining forces with a French syndicat formed to represent our interests in discussions with CELA

7 June 2010

This is my first entry here too. We are owners of an apartment in Orelle,

and have had the same problems with payment etc as listed. To date we

are still waiting on the last 2010 quarter payment and have just had an

email back from CELA saying it will be coming soon.......

The French blog seems to be getting more organised again, but not sure

where it is all going..... We had a previous apartment in La Tania and this

was handled by different letting agents, but seems best if it is all done as

a single going concern as otherwise concierging etc gets messy.

A further question we have is use outside of the main season, as we were

informed the the whole site is closed down. This does not seem

reasonable, as it is a leaseback not a time share, and we never had this

problem in La Tania. Given that a number of people have apartments and

are not leasing back, then access should be entitled. We mention this as

we like being in the Alps in the Autumn..........

Thoughts please on all this

1 June 2010

I have received no money as yet. We had been promised a payment in May but as at 1/6/2010 nothing...............

25 March 2010

Has nayone heard anything from CELA or the French group lately? Anyone received any payments? Also, does anyone receive any paperwork from CELA for the payments they receive? It's difficult to do the tax returns without any formal paperwork. I've tried emailing CELA at the new email address sent out in "the letter" but no-one ever responds. CELA are just the worst. I was never happy when they stepped in to replace Eurogroup, but Eurogroup are in no better financial position I believe

11 February 2010

All,


Has anyone received the 25% payment from Cela for Q3 and Q4 if you accepted option 1.



thanks


16 January 2010

Hi, I also received the same letter. I feel the only two real options are 1 and 4.


Option 1 however I feel is a little too vague as there can be two interpretations possible which I think is down to French translating into English (I hope anyway). I will be requesting the actual cashflow schedule for 2010 just to make sure or confirm actual amounts to be paid.


Option 4 would be good as we would have control of the apartment and could rent it out as and when we wish. Not however sure of any companies that would provide a rental service complete with laundry and maintenance unless we could agree a separate deal with Cela ? The downside to option 4 apart from the above would also be having to pay the annual service charge which I am not sure how much this is and whether or not this would include gas, electricity water etc. Also, I understand from a fellow owner that this would also impact the VAT that we received back from the French government as I understand that it is conditional that there is a leaseback arrangement in force. The fellow owner I refer to also is not iun the same predicament as us as he has now been paid fully although he like us went 6 months without payment but only recently received the rent. He also has not received one of these letters so it seems they are targeting specific people but not sure of what or how this has been done. This alone is a bit strange to me hence will also be asking this very point.


Finally, Option 4 will also attract (I would recommend) legal advice as this is breaking an existing legal contract hence not sure of any legal issues i.e. changing locks etc and also any rent that has not been paid i.e. the last 6 months do we have any recourse.


That all I know at this stage but will update when I hear back.


Regards




25 January 2010

We are owners of an apartment in Alenya - wondered if anyone had a list of other owners in Alenya. We have gone back to Cela stating that we do not find any of the options acceptable and requesting full payment. Their reply was that we had to pick an option. If we break the Lease with Alenya (the hotel and apartments are run by Cela) how would we rent out this apartment. If anyone has any further information we would be grateful.

20 January 2010

I have just spent the first part of my working day reading through the rather extensive French Blog. They are all equally shocked at the treatment meated out by CELA and several people are questioning the legality of the action. it would also seem that many of the French owners have been paid up to quarter 3 which is better than their UK couterparts! They have received tha same letter and it also makes no sense in French either - option 1 is totally unclear to all. Various people are contacting CELA with no success. Also it would seem that some actions have been taken at local judicial level by a couple of people but if I understand the situation correctly there is a lot of red tape to go through. One thing stands out though, the French, true to form, want to form a "syndicat" or "groupe de pression" of all the owners asap. They also have the list of other owners as noted by dgusic which gives them (and us) a powerful position if used to full effect. I need to do some work now but will be keeping in touch during the day

19 January 2010

Hi Nikki et al,



My French is acceptable! I will try and place a post on their thread 2moro. Whatever happens in the next week or so, I would urge no-one to accept any of the CELA "ultimatum" without careful thought. This is what they want - separated we have no chance of achieving anything but together we are a presausive force!


Cheers,



Dave T

19 January 2010

Hi all again :)<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />


I've just opened a letter received from France from Laurent Georges, Jean Paul Steiner and Daniel Osternaud who managed to get the list of Hameau des Eaux d'Orelle apartment owners (a lot of owners from the UK) and they are willing to share it with other owners.


They also sent an official letter to Cela and French Courts (not sure about the content the letter).


They would like to set up an association to deal with Cela.


Please e-mail me if you would like me to send you their e-mail address.


d.gusic@blueyonder.co.uk


Cheers


19 January 2010

I have just (coincidentally) received letter from Cela offering the same 4 options. Cancelling the lease wouldn't necessarily be problematic for us (we're sick of them and would rather rent it out privately), provided we didn't have to pay back the 20% VAT and we could still have it managed and maintained etc properly. I have asked Cela these questions so will see what they say and report back.
Excellent news that the French owners have their own forum - I am posting a message on theirs to say that we exist and if they can lend a hand that would be great. My French is terrible though - if anyone is more fluent please take over...

19 January 2010

Hi

I am also an owner at Sierra Nevada, Malibu, Canet and have just today received the same letter from Cela.I too am very concerned and confused as to what action to take from here.

Is there any way that all the owners can get together to employ a good lawyer to act on our behalf and advise us on the best course of action. Does anyone know of a good reliable lawyer based in the Perpignan area who speaks fluent english?

Does anybody have a list of the other owners? I doubt Cela will provide one to me!

If anybody has any ideas I would love to hear them.

19 January 2010

Afternoon,


Further to my earlier post, I have to date still not recevied anything in the shape of a letter from CELA........obviously I have read the other posts and am extremely concerned about what CELA might be up to here. It would seem that only some owners are receiving the whining letter with the offer of lease termination whilst others are getting a different version and even some money!!!! My recent cheque from CELA has been honoured so my rent is up to date except for the last quarter of 2009. I can only conclude that there is something devious afoot..........SO.......To anyone who has received a letter. Don't accept anything other than full payment at the moment. Accpet for example a lease termination and you will probably be in a right pickle.


We need to stick together. If Jo/Ros/Mark B are reading this, we need to get the e:mail list up to date pdq (there are at least 3 other parties to add from what I have seen) and do some serious planning/plotting pretty damn soon.


Increasingly concerned,



Dave T

19 January 2010

Hi all
I am another owner at Orelle and am delighted to have finally found some others - safety in numbers... Thanks for posting your correspondence with Cela - I have had a letter from them bleating on about how financially secure they are so clearly they are being very selective about who they offer this to. Please post their reply so I can see what the options are - I'm particularly interested in termination of the lease provided we don't have to repay the VAT, although have the same concerns about the place just falling into disrepair if they're not maintaining it (though that sounds like a risk anyway).
Has anyone investigated selling their property? I guess nobody would touch it with a bargepole at the moment but I just wondered if there's a market out there.
Very, very frustrating. If we get to the point of needing legal advice then I'd be happy to participate.
Thanks
Nikki

18 January 2010

Hi all,





This is my response to Cela:



Hi,<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />



Can you please clarify options 1 and 4.



It is not clear if you are going to pay 25% of the outstanding balance in each quarter of 2010 including regular payment of rent for four quarters of 2010? If this is the case I am willing to accept option 1.



If you cancel the leaseback agreement what happens to the VAT and rental income, do we have an option to go with another agancy? As far as I remember I purchased this apartment with “guaranteed” rental income as specified in the brochure. I do not see how this is “guaranteed” if you terminate the leaseback agreement.



I have also noticed that you increased the price on all apartments by 50%. How do you expect to rent anything at that price? Do you rally think that someone will pay that much? I do not think so!!! That just proves to me that you are totally incompetent. If you ask me the only way out of this situation is special offers and reduced price to aim for 100% of capacity rental in months Dec-April. You really do not have a clue about tourism, do you??? If I had a choice I would have run away from you long time ago.



I am becoming increasingly frustrated about the whole situation and if this is not resolved to my satisfaction I will instruct solicitors to act on my behalf to initiate legal action against the developer, your company and the French government for obvious deception. Leaseback is nothing but a scam so developers, leaseback companies, the government and the banks can make many on us and at the same time put us in a situation where you do not have a choice for go for an alternative.



In any case money owed to me for 2009 quarters 3 and 4 is overdue and I expect this to be paid to me asap one way or another. Please note that I am not interested in any holiday time in lieu so option 3 is out of the question.



I would appreciate if you can respond today with your answers.




Regards

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