Madeira Palacio Hotel “fraudulent”

23 former employees win compensation

Madeira Palacio Hotel "fraudulent" 1Two dozen workers who did not initially reach an agreement with the company that ran the Madeira Palacio Hotel (pictured in its heyday) have been awarded compensation after the Administrative Court of Funchal finally decided in their favour.
The Madeira Palacio was a hotel opened in 1972 with the management of the emirate Hilton Hotel Group but has been closed since 2007 when it could no longer continue trading. At the time of insolvency, the company then running the hotel, Lignum, had debts in excess of 137 million euros. Millenium BCP were owed €122 million, an amount that was covered by the deeds to the property. The building has recently been sold and should reopen in 2022 as previously reported here

The Administrative Court of Funchal considered that the insolvency of the company that managed the hotel Madeira Palace was ‘culpable’ and ‘fraudulent’. Therefore, the administrator of the company Lignum is obliged to make compensatory payments to 23 former employees of the hotel. The amount in question is still being determined but it was explicit in the sentence that will come out of the pocket and the assets of the management of Lignum, Armando Martins.

 

 

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