Ultimate Escapes Predicts At Least One Bidder For Bankrupt Destination Club

By: Destination Club News
Date: October 15, 2010

Ultimate Escapes Chief Restructuring Officer Sheon Karol has reached out to members concerning progress in the club's bankruptcy filing, stating that they are "close to a resolution of the future of the company" as the scheduled deadline for bid submissions was supposed to end today but has since been pushed to Saturday with the auction set for Monday and a sales hearing taking place on Wednesday, October 20, 2010.

Karol sent a brief message off to members about this news, including a blurb about the surplus of membership options that have been introduced to members of Ultimate Escapes in the past several weeks.

Dear Ultimate Escapes Members,

I wanted to send this status update to you as we are close to resolution of the future of the company. Tomorrow, October 15, 2010, is the deadline for submission of bids for the purchase of the company’s assets and the auction is set for Monday, October 18, 2010. The sales hearing will be on Wednesday, October 20, 2010. I am pleased to tell you that we believe that we shall receive at least one bid that provides for operation of properties by another company.

Members continue to receive offers from other clubs. None of these offers are being done with the Company’s cooperation or consent. Any communication or offer to you will be clearly identified as coming from me or Ultimate Escapes.

We thank you again for your support and we hope for a successful auction. If you have questions, you may continue to submit questions via email to bankruptcy@ultimateescapes.com.

Thank you,

Sheon Karol
CRO

If all goes according to plan, this will far and away be most streamlined bankruptcy in the history of the destination club sector, taking roughly one month. The U.S. Trustee has argued that this has all taken place too quickly to benefit Ultimate Escapes' secured lender CapitalSource. The club counters that their haste has been a result in a lack of liquidity and to keep members from joining other clubs such as the newly launched DUO, a new destination club created by Quintess, or other established players like Exclusive Resorts or The Discovery Club. It will be interesting to see how all plays out and please check back more for up to the minute news about Ultimate Escapes and the rest of the destination club sector.