Three condominium owners have contacted The Park Record saying they have given up on working with Zatz due to his unresponsiveness.
Zatz did, however, send a personal letter to past and current clients on July 21 explaining his decision and his predictions for the future.
"These past several months have been the most difficult of my 25 years in business," he wrote near the beginning of the letter.
He explained that he first became aware of his crisis after sending out revenue checks in late February.
"It was evident that the company's projected share of the income could not sustain recurring expenses," he said.
Zatz said he faced a "Hobson's choice," a phrase meaning a false choice between something undesirable or nothing. It is also used to describe a situation when the only alternative to a course of action is death.
"We could have terminated the business at that time, cancelled all reservations on the books of the company, terminated all 150 employees and advised the owners that the front desk and all lodging services had come to an end," he wrote.
Instead, he said he and Nick Caravaglia, company president, "elected to continue the business rather than ruin the reputation of the properties we managed, cutoff the livelihood of 150 families and close down the front desk and ruin the vacation plans for our owners and renters."
He said that after making that decision he liquidated all of the assets he had in order to fund the day-to-day operations and payroll of Crossways Corp.
Therefore, he wrote, "Those owners who elect to enter into contracts with other rental management companies or to self manage will continue to have a claim against Crossways Corp. for the claimed rental revenue, although I doubt Crossways Corp. has or will have the liquidity to make such payments."
Park Station Condominium Hotel is one such group of owners who have elected to pass on Phoenix Realty Group's offer to pay back owed money in installments over three years in return for signing a new three-year contract.
Park Station's homeowner association board elected to sign with Park City Lodging in May. The board is currently performing an audit to determine how much money DHRL owes it.
"Once we have that, we'll proceed in best interest of the homeowner association," said board president Jon George.
Secretary and treasurer Tom Wirth explained that Crossways Corp. in the spring stopped contributing to joint payments of water, electric, telephone and cable-television bills.
The amount is predicted to be in the tens of thousands of dollars.
"I don't think it's right. I don't know if it's legal," he said. "I don't know how a company can sell assets and stiff everybody else of what's left."
Wirth said he saw the July 21 letter and doesn't understand how Zatz can suggest owners like those at Park Station, won't get their money.
"He admitted he owed the money. If he owes the money he owes the money," Wirth said.
On the afternoon of July 21, Phoenix Realty Group released an official statement on the transfer of ownership. It said the company anticipates a smooth transition of the nightly rental operation that will be completed in mid to late September.
Reservations continue to be taken for the 2009-2010 ski season.