Ultimate Escapes Members Join Together To Form Member Only Group

By: Destination Club News
Date: September 14, 2010

On the precipice of what could be a bankruptcy filing that would shake the foundation of the destination club industry, Ultimate Escapes reached out to members via a webcast last week to outline the five primary options that the club has moving forward. In the wake of that presentation, a group of Ultimate Escapes members have formed a "members only" e-mail distribution list to see if other alternatives could be possible.

Interested members should e-mail UEMemberOptions@gmail.com for more information.

Ultimate Escapes President and CEO Jim Tousignant led the webinar with "We are in crisis." In default of a loan agreement with CapitalSource after not making interest payments to the lender since June and unable to maintain a minimum cash balance, Ultimate Escapes profiled five options for the club. Please feel free to learn more about each by clicking on the links.

• Conversion To Become Member Owned
• Permanent Annual Dues Increase
• Merger With Another Club Or Hospitality Firm
• Sale Of The Club
• File For Bankruptcy

Ultimate Escapes is backing the conversion to a member-owned structure, a plan requiring each member to pay between $15,000 and $50,000 as an "Equity Club Conversion Fee." Members would then be able to convert their membership into shares in the club. Members were asked to vote in a non-binding poll about their interest in this structure and the results are scheduled to be distributed by the close of business today, needing an estimated 750 members to progress further.

We have spoken to several Ultimate Escapes members who have voiced their concerns about this plan, with the primary issues stemming from the large amount of debt that would still be left unpaid to CapitalSource and the current faith in the club's leadership team. The results of the poll will provide a better perspective on what the future holds for the club.

Regardless of the results, we urge Ultimate Escapes members to contact this member group. Having worked with many Ultimate Escapes members in the past, we know the vast amount of knowledge and the intimate understanding of the destination club model that they possess. This think-tank of members may be able to find a solution for the club and are currently working on some progressive concepts to rescue Ultimate Escapes.

We look forward to learning more and please check back soon for the latest news on Ultimate Escapes.