December 21, 2018
We would like to give you an update on The Royal Caribbean.
Today Grand Caribbean Company, Ltd. sent an email to all members of The Royal Caribbean with the following information.
In accordance with the terms of the Membership Agreement pursuant to the sale of The Royal Caribbean® and the distribution of net proceeds thereof, the Membership Company will be transferring or sending members in good standing the amount corresponding to their residual rights payment from the sale of the resort starting in the first quarter of 2019.
As we previously informed members, The Royal Caribbean assets have been sold to a Royal Resorts affiliated company for US$56,000,000.00, the highest of the three professionally appraised values for the resort.
Furthermore, Royal Resorts assigned an additional amount to ensure that the net amount to be received by The Royal Caribbean members is higher than the amount that would have been obtained under the unsolicited offer.
With regard to the process of calculating the amount to be distributed as residual rights, the Employee severance payments and municipal, state and federal taxes were deducted from the sales price of assets arriving at the Net Sales Price. Once this process was completed, the net proceeds from the sale of the resort and the remaining cash reserves held in Resort Accounts as of November 3, 2018, including the Club Cash Reserve and the Hurricane Fund, were sent to the Membership Company for distribution among members in good standing that have residual rights.
The Royal Caribbean sale process was conducted in accordance with the terms stated in the membership agreement. The number of members in good standing as of November 3, 2018 who are entitled to receive the residual rights payment is 9,762.
In January 2019, The Royal Caribbean members will receive another letter with details of their individual payment and further instructions.
This set of additional Questions and Answers may be useful to members.