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Court Rules Fraudulent Insolvency

A court ruling now states that the insolvency claim of the former owner of the Madeira Palácio Hotel, Lignum – Investimentos Turísticos da Madeira, SA, is fraudulent.  Now that this is the case, twenty-four workers will hopefully have their compensation claims honoured.

The affected workers gathered earlier this afternoon at the plenary session of the Hotel Workers’ Union of Madeira, where lawyer Marcos Gonçalves, made those present aware of the situation. The seventy-page document finally brings some peace of mind after a dispute of ten years.  Unfortunately, some workers have died since the original claims were lodged, but any monies due will be distributed among the heirs.  It does not end here, although the overall application is said to be in the region of €200,000.00, the interested parties will now have to go through a new procedural stage to receive their money, but at least they are now credited as being ‘privileged creditors.’

On talking about the case, Marcos Gonçalves stated that the workers might have to file criminal claims against the company in order to receive their compensation from the selfish behaviour of a businessman, who while safeguarding his interests did not worry about those who had worked for his company and effectively contributed to his lifestyle.

The same workers are also awaiting the outcome of another case, which is being heard in the Administrative Court of Madeira relating to their Social Security payments. According to the lawyer, Lignum – Investimentos Turísticos da Madeira, SA informed Social Security that the said workers contracts had ended even though this was not the case.

This case still has a long way to go, but it is good to see justice on the side of the worker.

Samantha Gannon

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Madeira Weekly