Another Breach of Contract by Bacolet Development Finance

As followers of this site may know, last year I signed a variance agreement with Michael Gunn of BDF which guaranteed full repayment of my original $30,000 investment “in any event” (ie regardless of the progress or otherwise of the Bacolet Bay project) by 7 December 2018. Michael assured me in August of this year that he was confident the payment would be made.

Obviously given the history of the project I was sceptical that this would actually happen and an email exchange with David & Joachim from the FRC last month confirmed my fears, with Joachim saying there would be no payments for a long time.

The deadline came and went last Friday and it was no surprise that the money did not arrive. I also got the following from Michael Gunn:

As you are aware from previous correspondence, BDF is not in a position to make payment to you the sum of US$30,000 under Clause 2.6.

However, I confirm that:

  1. Interest will accrue on that amount at the rate of 5% per annum in accordance with the Variation Agreement; and

  2. Steps are being taken to seek to remobilise the project and generate sales to enable payment to you as soon as possible.

Michael has also asked me to arrange a time for a phone call with his partner Kash Lais, but there seems little point wasting any more of my time listening to the same empty assurances I’ve been hearing since 2014!

It is clear that Michael drew up the 2017 contract in the full knowledge that it would never be honoured; as such it was simply a fake document to fob me off for another year. It’s hard to think of a shabbier or more unethical way to treat someone who has invested several thousand dollars in your project.

It seems that, with the BDF out of money, the FRC washing its hands of purchaser interests, and the only project asset – the land – stashed offshore in Guernsey with unknown owners, the only recourse now is legal action.

 

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