Newhaven marina - to pay or not to pay?

Aeolus

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The plc that owns the company that operates Newhaven marina has gone into administration. The marina asks for annual berth fees in advance, payable in January, and does not accept credit cards.

Presumably, if the administrators sell the marina company as a going concern, then my contract would remain in-force and I would not lose anything. If, on the other hand, they decide to sell the assets (i.e. the marina property) and a new operating company takes over, then my contract with the original operating company will be terminated and I may lose the fees paid in advance.

I haven't paid yet. Should I? What's the forum's collective legal opinion?
 
You could ask the administrators PWC, but they are working for the bank RBS. Me I would switch to paying montly to limit any risk.
 
Wait for the final demand and then make the decision to pay monthly. Not going to throw you out are they?
Better to owe them than for you to expect them to provide you with a service that you pre paid for.
 
If you pay the Marina and they go then you become an unsecured creditor. Anyone taking over the Marina will expect to be paid for their services .. Best not to pay yet .. Would wait .. You should be able to string it out until you know whats happening .. One of our clients paid his annual software support £3500 and the company ceased trading 6 weeks later .. The Administrator sold the assets of the Company and they were then asked to pay again .. It went along the lines of .. Well you paid the last company .. Not us .. Yes we know that we have taken on all the staff etc .. But you have NOT PAID US .. /forums/images/graemlins/confused.gif
 
In situations of contractual uncertainty, you are entitled to hold back from payment, ie completing the contract, especially for a lengthy period ahead.

In advance of a new order emerging in the management of the marina you cannot, in your own interests, assume anything.

The administrator/new owners need to assure you that they can deliver the service for the whole period invoiced - ie that they are firmly back in business. In the meanwhile and until that certainty is reintroduced you will wish to show willingness to continue as a customer, subject to being satisfied that both parties can keep the deal, and that your money will not be forfeit. Vague words in this connection have absolutely no value whatever. Hasten slowly!

Any reasonable organisation confident of its ability to deliver will respond positively to this approach. One that demands immediate money with threats of eviction will not be one that commands your confidence and respect - no?

PWG
 
They should accept Visa, this seems unfair. If paid by Visa, and in the event of a change in owneship where contacts are no longer void, then its likely your Visa Insurance would sort you out. I wouldnt pay in full if it were me, i would pay monthly if it were an option. If not, i dont think i would take the chance atall. But in the event of a "take over" i would have thought that the new operators would be liable to honour the contracts.
 
"But in the event of a "take over" i would have thought that the new operators would be liable to honour the contracts. "

Why, except for goodwill? They would be hosting (and assuming some duty of care) for a boat that they had received no revenue from.

Better to pay monthly amounts to the administrator, until new owners are established and can offer you a long-term contract.

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Edit

Might also be worth forming a User's Association, so you all take the same line, and maybe chip in for legal advice if the excrement hits the aircon.
 
Quote: But in the event of a "take over" i would have thought that the new operators would be liable to honour the contracts.
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Yup, it would indeed be a matter of honour - not contract.

Looked at end to end, customer pays owner A under contract A who then goes out of business. Owner A uses the dosh to pay his bills or the administrator who takes over uses the dosh to discharge debts in order of need.

Enter Owner B, who has to provide the service and pay his bills for the year ahead, and behold, Owner A has walzed with the dosh already paid. Along comes customer saying I have this contract with owner A - OK? Owner B says "nice one, but its not my contract, so here's some new paperwork, and let me have your cheque by the end of the...won't you, old chap?"

Caveat emptor still rings true..if the assets don't transfer with the liabilities how will the new owner square the circle?

PWG
 
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