Ultimate Escapes Vacation Club Files for Bankruptcy Protection
Ultimate Escapes Vacation Club Files for Bankruptcy Protection
Ultimate Escapes, Inc. (UEI) said it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware for itself and certain of its subsidiaries. Ultimate Escapes is a luxury vacation club with accommodations available in the continental U.S., Hawaii, the Caribbean and Europe.
UEI’s board of directors authorized the filing of a Chapter 11 petition following the recommendation of a special committee of UEI’s independent directors in order to protect UEI’s assets with a goal to maximize the value for all of its constituencies, including its creditors, members and potentially its shareholders.
The company has requested that the Court approve the appointment of CRG Partners, LLC to provide the services of a chief restructuring officer and supporting personnel. UEI has also filed a variety of first day motions that will allow it to manage its critical operations with the goal of continuing to provide a reasonable level of services to its members for the short period of the expected proceeding.
In conjunction with its largest secured lender under an agented credit facility, UEI is exploring the sale of its operations to another destination club, hospitality company, or investment group, as well as other strategic alternatives. The company said efforts to explore such options had begun several weeks ago. Among the options that have been explored is the possibility of a stand-alone plan whereby members could acquire equity in the club.
If no higher and better bid is obtained within the process approved by the bankruptcy court, then such secured lender or its assignee will purchase substantially all or certain of the debtors’ assets to be determined at a final closing. However, the company said no assurance can be given that UEI will be sold as a going concern or that any such plan will result in any recovery to the shareholders or unsecured creditors of UEI.
