Judge sustains Leonara's bank guarantee to Sandmann

May 13, 2011 6:24 AM

Within one week, Arnold Leonora, the current owner of DAE, must give former DAE owner Niek Sandmann a bank guarantee of 1.5 million dollars issued by a local bank.

This was the judge’s verdict this morning in summary proceedings instituted by Sandmann.

The bank guarantee must be payable as of December 9th or earlier, namely on the day that Leonora had applied for a moratorium or his bankruptcy. In addition, the judge imposed a penalty of 150,000 dollars.

On that particular day (December 19th), Antilles Aero Holdings B.V. (the buyer), Leonora (the guarantor) and Sandmann (the seller) concluded a Share Purchase Agreement (SPA), whereby amongst others the shares from DAE were sold for one (1) euro. At that time, the poor financial position of the airline company was no secret. The agreement signed at the notary, states that Leonora was to provide a bank guarantee of 1.5 million guilders before March 31st of this year and to pay the owed amount to Sandmann within one year. Sandmann had gone to court when the bank guarantee remained forthcoming.

The judge further allowed that Renovema, responsible for the two business premises of DAE in the Breedestraat Punda and Pietermaai, join in the summary proceedings on the side of Sandmann, just like High Seas. There is a mortgage on the business premises and the bank is now objecting the transfer to DAE. In addition, Sandmann has yet to repay an outstanding loan with High Seas. It regards amounts twice that of the 1.5 million dollars.

The judge deemed the urgent interest of Sandmann proven now DAE is in dire straits. However, Leonora did not fulfill his obligations because he intended to have the judge terminate the SPA-agreement of December. He states that Sandmann had misled him with regard to DAE’s financial situation. The airline company had appeared to have more financial obligations and the financial administration was not arranged properly. However, the judge ruled that from the SPA-agreement it clearly appeared that DAE had been on the verge of bankruptcy and the financial administration was not arranged properly. Moreover, Leonora looked before he leaped and sought advice from several financial specialists. Therefore, he is bound to the conditions of this agreement.

The verdict is provisionally enforceable. Although Leonora could appeal to a Higher Court, this does not impede the execution of the verdict, Sandmann’s lawyer, Lex Gonzalez says in reply. In any case, Leonora is to produce the bank guarantee within one week.

Niek Sandmann is represented in this case by attorney Lex Gonzales of law firm Curacaolaw. Arnold Leonora was represented by himself, attorney Chester Peterson of Sulvaran _ Peterson and later by Frank Weise from Aruba.

12 May 2011