Ultimate Escapes Updates Members About Demeure Agreement

By: Destination Club News
Date: October 21, 2010

A busy week long stretch for Ultimate Escapes Chief Restructuring Officer Sheon Karol hasn't yet ended. First he contacted members, stating that the club was confident that they would receive at least one bid for the bankrupt Ultimate Escapes. He followed up on Tuesday, confirming that the club had accepted a bid for the bulk of the club's assets. Today, after just over a month of chaos as the club worked its way through its bankruptcy, it has been announced that Demeure acquired Ultimate Escapes and will soon be in contact with members about transitioning to the club.

Karol contacted members today to announce the news, giving Demeure and the agreement his full support.

Dear Ultimate Escapes Members,

I am pleased to inform you that the Company has reached agreement with the Laurence Group, based in Waterloo, Ontario, Canada, to sell a number of the company's properties and to offer members an opportunity to transition their Ultimate Escapes membership experience to the Demeure travel club, an affiliate of the Laurence Group, on preferred terms. The transaction remains subject to court approval and satisfaction of closing conditions.

I am also pleased to inform you that the Laurence Group has additionally agreed to lease a significant number of the Company's former properties from Capital Source, which combined with the homes they are buying, will allow for members to continue to use the majority of the homes they know and love.

Our agreement allows for Demeure to invite our members to transition your membership to the Demeure club, and, unlike the previous offers you may have received from third parties, this offer is not only authorized by the Company, but has our complete support. The Company will be working hand in hand with Demeure in transitioning all interested members to their Club.

I believe this is a very good result for the members, and that we have accomplished our goal of providing a home for members that will enable them to begin traveling again very soon.

A press release is being issued contemporaneously by Demeure, and we will post it on the Member Only Website as soon as it is available.

As always, we thank you again for your support. If you have questions, you may submit them via email to bankruptcy@ultimateescapes.com.

Thank you,

Sheon Karol
CRO

The transaction still needs court approval and needs to meet closing conditions, but the future of the club ultimately will rest with members. Without question, many Ultimate Escapes members have given up on the destination club experience, already burnt by multiple bankruptcies. It will be up to Demeure to craft a membership option that not only is attractive to the majority of club members, but one that also assures that another bankruptcy won't be in the cards for club members.

Demeure CEO and Chairman Peter Schwartz has stated that he will be in contact with Ultimate Escapes members in the coming days about the offer and the transition process. As always, we will report on every detail, so please check back frequently.