WILLEMSTAD - The Court of Appeal has ordered the director of Caribbean Hospitality Management (CHM) to repay more than 400,000 Caribbean guilders to development bank Korpodeko. The ruling concerns loans that were previously granted to a company that later went bankrupt, for which the director was jointly and severally liable.
In an earlier ruling, the claim by Korpodeko had been dismissed, but the court reached a different conclusion on appeal. According to the judgment, there is no evidence that Korpodeko breached its duty of care in the handling of the loans. The director argued that the bank had failed to sufficiently recover pledged collateral, including hotel inventory. The court rejected this defense, stating that Korpodeko had made adequate efforts to enforce its security interests.
The case has a long procedural history. CHM entered into credit agreements in 2007, 2011 and 2014. In subsequent years, financial problems emerged, leading to disputes with various parties, including the Ontvanger and the OWDC. The company was declared bankrupt in 2017. A year later, an arrangement was reached regarding the sale of seized assets.
The court ultimately ruled that the director must repay 404,342 guilders, plus statutory interest. In addition, he was ordered to cover the legal costs of the proceedings.
The decision underscores the risks associated with personal liability in corporate financing arrangements and confirms that directors who are jointly bound to loan agreements can be held personally accountable if obligations remain unmet after bankruptcy.