Harlequin Property's flagship resort Buccament Bay has been hit by violent flooding after torrential rain fall in St. Vincent over the Christmas period which left one resort staff member dead.
The staff member died on her way home from working at Buccament Bay. In total eight people died on the Caribbean island during the natural disaster which struck on Christmas Eve.
In a statement, Harlequin quoted the Prime Minister of St Vincent and The Grenadines Ralph Gonsalves as saying that the events were "the worst natural disaster in living memory".
Harlequin said its Buccament Bay resort experienced "some non-structural damage" as a result of the storm, and has now been cleaned and restored to normal operating conditions.
The ordeal is the latest in a series of unfortunate events which have befallen the company.
Harlequin - which has taken about £400m from investors to invest in properties across the Caribbean - has been rocked by problems since the start of last year, including three warnings by the regulator, investigations by the Serious Fraud Office and the Insolvency Service, and its sales arm and major distributor going into administration.
Building work has stopped on several of the complexes it invested in, meaning investors, who only realise a gain once the planned villas and hotels are fully operational and are being stayed in by paying customers, have been left in financial limbo.
A trust designed to safeguard the assets of investors in the troubled overseas property company is on course to be set up by the end of this month, the company has said.
Some 3,500 investors have signed up to the planned trust, which Harlequin has said "represents the option that will give the Harlequin investment the best chance of success whilst protecting investors' interests".
An investors-backed trust structure will lift the threat of legal action against Harlequin and allow it to seek third party funding to re-start building work on the land it has acquired with investors' money.
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