# Beware - Consolidated Resorts Filed Bk [MERGED]



## lv_maui

I have had several confirmations that Consolidated Resorts filed for BK today.  Not sure what Chapter.  That includes Lahaina Ticket company.  Anyone associated with them should beware about tickets, etc.


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## LisaH

OMG! I'M an owner at Sands of Kahana. Wonder what this BK would mean to our resort...


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## dougp26364

Is this the same company that developed and manages Clud Del Soliel, Tahiti and Tahiti Village in Las Vegas? If so I'm a little surprised as word was they were moving a ton of inventory at high prices with Tahiti Village in Vegas. I actually like the idea of Tahiti Village since it have a very nice resort concept with good room layouts but I absolutely hated the location, which was in the flight path for depating planes at MacCarren airport.


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## LisaH

All the resorts you mentioned are managed by Consolidated Resorts Management in LV. Called CRM and was told the resort management part of the business will not be affected, whatever that means...


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## sailingman22

I checked the Hawaii newspapers and googled Consolidated Resorts with no hits other than they purchased Kauai Sands property and are scheduled to spend around $25 million making the units into 1bd ts for $25,000 each. This was an older post that Colsolidated Resorts would not verify when I was purchasing a ts at Kahana Beach. Please post a link to a news story about CR bk. Thanks.


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## UWSurfer

http://www.lvrj.com/news/breaking_news/48947756.html

http://timesharescamsupdate.blogspot.com/2009/06/consolidated-resorts-to-close-sales.html

http://www.city-data.com/forum/las-vegas/678842-scary-unemployment-11-2-a-5.html


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## lv_maui

sailingman22 said:


> Please post a link to a news story about CR bk. Thanks.



I heard about it from friends on the streets of Maui, and then confirmed it with my timeshare sources in Vegas.  The lack of receivable financing due to the credit markets coupled with the new owners (Goldman Sachs/Apollo) refusing to invest any more  capital into the business created the problem.  To me, this is not surprising and wonder how many others are having issues.

Timeshare sales is extremely depending upon the hypotheciation of its receivables for cashflow.  The recent credit markets have caused this to be scarce.  I do not know anything about their profit and loss statement but obviously, they are low on cash.

The question is whether the company is going to re-organize and emerge from BK or are they liquidating and selling off the assets.  The press releases really do not say anything about it.


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## mshatty

*No bankruptcy filing*

I did a search on the PACER US Party Index for all bankruptcy courts in the US.  There is no bankruptcy filing for Consolidated Resorts.

It has participated in some bankruptcy cases as a creditor.


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## dougp26364

mshatty said:


> I did a search on the PACER US Party Index for all bankruptcy courts in the US.  There is no bankruptcy filing for Consolidated Resorts.
> 
> It has participated in some bankruptcy cases as a creditor.



This seems pretty straight forward to me.

*Consolidated Resorts, owners of the time share Tahiti Village Resort on Las Vegas Boulevard South, is filing for bankruptcy protection.

Company officials confirmed late Tuesday that they had shut down sales and marketing offices in Las Vegas, Orlando, Fla., and Hawaii.

Tahiti Village Resort shut down information booths Tuesday around town, including those in Strip resorts and along Las Vegas Boulevard.
*

Perhaps the paperwork hasn't hit the courts yet and all CSR has done is to announce it will be filing bankruptcy.

I have to admit I'm not going to miss all the TV street vendors interupting us as we walk down the street, into a casino or shop in a mall. While most TS street people are bad, I found them to be some of the worst out of the lot of them. For whatever reason they always seemed to zero in on me. I suppose Westgate is now primed to take they positions and will become as obnoxious as CSR had been in the past. Of course, if DRI has fired up sales again in Las Vegas, they could easily compete with the Westgate weasels for top billing as annoying street vendors in Vegas.


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## lv_maui

*Preparing to file*

I think you all are all right that they are preparing to file.  It is very strang in this circumstance to have the employees be told that they were filing.  Usually, they tell them the day of although it is not a secret.

In my case, I know a creditor of them of daily activities.  By hearing this, Consolidated's credit account was suspended.  Not a big deal!

But my sources do say that they are def going to file, I bet then today or this week.  Why else close EVERYTHING down in Sales.

Owners be concerned but not worried.  You usually are protected if you have a deed to your week.


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## sailingman22

Any thoughts about how their filing bankruptcy will effect ongoing management of their various resorts in Hawaii? I called Consolidated Resorts Customer Service line and left a voicemail message of the recorder but could not connect with a rep. 

We just purchased a ts at the Kahana Beach Resort and have reservations for late Nov. I hope that they either reorganize under bankruptcy or find another management company soon.


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## UWSurfer

sailingman22 said:


> We just purchased a ts at the Kahana Beach Resort and have reservations for late Nov. I hope that they either reorganize under bankruptcy or find another management company soon.



One of the links I posted last night had the following: "Owners with questions were referred to Soleil Management, which can be reached at 1-800-775-8463"

From the website(s) it appears that Soleil Management and CRM are either the same company or are setup in such a way that Soleil may take over.  I have a reservation at Gardens at West Maui in February.  I'm going to let the dust settle for a week or so and then check in with Soleil and make sure they have the confirmation in whatever system they are working from.


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## UWSurfer

I just saw this note from the discussion section of the Las Vegas Sun on this story:  http://www.lasvegassun.com/news/2009/jun/23/vegas-timeshare-company-close-sales-operations/

"I worked for Consolidated and lost my job yesterday because of "The scarcity of lenders in the timeshare industry has made it impossible to continue the company." If we can't sell, we can't stay in business! I worked on commission with a monthly bonus on sales, and yes sales have gone down dramatically! It is sad that so many of us are now without a job. When we got the news and were sent home yesterday, I thought that none of us would be paid for last week ... until I got a call last night telling me to come in and pick up my final paycheck. I have a lot of respect for the company, they could have screwed us, but they didn't."


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## iluv2write

*Consolidated Resorts Bankruptcy HELP!*

Today, we got the official news that Consolidated Resorts has filed for bankruptcy.  I found a website pertaining to it that I linked but it doesn't provide me enough information as to what I should do next.  That's the most I could find so far but I'm guessing that some of you might have experienced similar situations with other resorts from the past.  

I have held a Tahiti Village timeshare for quite a while now and I did enjoy it.  Now I am having deep concerns of the value and how my annual fee and contingency will change due to this.  The resort hasn't contacted us yet and the guest services haven't got the slightest idea and they kept transferring me back and forth when I brought up the word "bankruptcy".

Any advice?


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## post-it

iluv2write said:


> Today, we got the official news that Consolidated Resorts has filed for bankruptcy.  I found a website pertaining to it that I linked but it doesn't provide me enough information as to what I should do next.  That's the most I could find so far but I'm guessing that some of you might have experienced similar situations with other resorts from the past.
> 
> I have held a Tahiti Village timeshare for quite a while now and I did enjoy it.  Now I am having deep concerns of the value and how my annual fee and contingency will change due to this.  The resort hasn't contacted us yet and the guest services haven't got the slightest idea and they kept transferring me back and forth when I brought up the word "bankruptcy".
> 
> Any advice?




I saw another posting regarding this bankruptcy:
Beware - Consolidated Resorts Filed Bk


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## UWSurfer

Look at the thread already going on here on Tug...there's an 800 # with Soleil management.  My plan is to wait a week and let the dust settle a bit before calling.  Consolidated Resort Management operates our Maui T/S.

http://www.tugbbs.com/forums/showthread.php?t=100489&highlight=consolidated+resorts


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## iluv2write

Hey guys, I started a thread not knowing that this one existed because I own Tahiti Village.  I am pretty sure that if they go under, all our timeshares will go under with it.  As of now, I just want to get out of it before things go really bad.  Any suggestions?


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## UWSurfer

It's a little too soon to say what will happen as the economic forces are down across the board, but another timeshare I now own, Summer Bay Desert Club went bankrupt years ago and another company came along and took over the property.

I wasn't around for all the "fun" and many others on Tug here were who can chime in on all the headaches and bumps they experienced.   It's interesting to note that Ceasars/Harrah's wanted the Summer Bay property and ended up exchanging it for a newer complex across the street from the old property and kicked in mulit-millions to update and upgrade the complex SB moved to, resulting in a much better property for existing owners, with more inventory for the present operator of SB to sell.

It will be interesting to see what happens next, but I wouldn't panic just yet.


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## Twinkstarr

UWSurfer said:


> It's a little too soon to say what will happen as the economic forces are down across the board, but another timeshare I now own, Summer Bay Desert Club went bankrupt years ago and another company came along and took over the property.
> 
> I wasn't around for all the "fun" and many others on Tug here were who can chime in on all the headaches and bumps they experienced.   It's interesting to note that Ceasars/Harrah's wanted the Summer Bay property and ended up exchanging it for a newer complex across the street from the old property and kicked in mulit-millions to update and upgrade the complex SB moved to, resulting in a much better property for existing owners, with more inventory for the present operator of SB to sell.
> 
> It will be interesting to see what happens next, but I wouldn't panic just yet.



Well I think some are hitting the panic button.

I've just seen 3 deposits into II for 1brs at Sands Of Kahana for July in just 15 minutes.


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## sailingman22

Here is an email that I just received from CRMLV concerning the announced shutdown at Consolidated Resorts.

"Thank you for contacting Consolidated Resorts Management.   Our sister company Consolidated Resorts, Inc. has shut down its sales and marketing operations in Las Vegas, Orlando and Hawaii and will file for bankruptcy protection. The economy and the lack of financing for the sales and marketing operations and new projects made it impossible to continue the company. However, the bankruptcy of the timeshare company doesn't affect the on-going operations of the management of the resorts. All of the associations' funds are kept in separate accounts for each association.  All of the resorts will continue to operate uninterrupted so owners do not need to worry. It is business as usual for Consolidated Resorts Management and Soleil Management"


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## timeos2

*Usually not so good*



sailingman22 said:


> Any thoughts about how their filing bankruptcy will effect ongoing management of their various resorts in Hawaii? I called Consolidated Resorts Customer Service line and left a voicemail message of the recorder but could not connect with a rep.
> 
> We just purchased a ts at the Kahana Beach Resort and have reservations for late Nov. I hope that they either reorganize under bankruptcy or find another management company soon.



IF I were an owner there i would HOPE the management could be turned over to a professional third party rather then another developer. That is almost always the best situation for owners to be in. What is more likely, unfortunately, is that the carcass will be cherry picked by some other developer who will take over sales AND the management contract (which since it was put in place by Consolidated as the developer most likely does NOT favor the owners).  Who knows who that will be - Wastegate anyone? - then the real fun begins as the new group wants things their way. 

In any case it isn't a good turn of events unless the management contract gets redone as I said.


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## Greg

*Consolidated Resorts file chapter 11*

How does their filing effect current owners and exchangers? I assume that it will cause concern for the Hawaii owners as well as the Las Vegas owners.

http://www.globest.com/news/1438_1438/lasvegas/179432-1.html


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## iluv2write

There's some pretty interesting information regarding this that I found on digg that led to this site: http://consolidatedresortsbankruptcy.com/

it puts me a bit on edge knowing that I may be in this "precarious position" as they mention. yikes


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## dougp26364

If I were an owner, I wouldn't be happy but, I wouldn't panic either. This isn't the first timeshare developer to declare bankruptcy and it's not going to be the last. You can look at what happened to the old Debby Reynolds Resort, Epic, Ramada or Sunterra for reference. All went through major changes but, all of the owners kept what they owned. The big difference was a change in who was managing their resorts.

In the next two years I'd anticpate becoming part of another timeshare group or, at the very least, a new management company running the resort. There will likely be a few rough spots but, in a few years it should even out and might actually improve.

To me the big question will be who's might take over? Who has the cash on hand or the ability to finance this purchase? Off the top of my head I'd say the most likely contender is going to be Diamond Resorts. They're headquartered in Vegas. They had been looking at developing a new resort in conjunction with the Hard Rock Hotel expansion and picking up the unsold inventory would give them something to work with in Vegas again. They have strong contacts in Vegas. They're trying to expand and offer new options to DRI's THE Club members. I'm sure they'd also love to pick up the management contracts at all the old Consolidated Resorts which would provid them additional income. The question is, would DRI have the money? They attempted to buy out Bluegreen but came up short in the financing department. 

At any rate I wouldn't be hitting the panic button or worrying about the value or you week. Yes it's a rough spot in the road but, in the long run I think things will work themselves out.


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## dougp26364

iluv2write said:


> There's some pretty interesting information regarding this that I found on digg that led to this site: http://consolidatedresortsbankruptcy.com/
> 
> it puts me a bit on edge knowing that I may be in this "precarious position" as they mention. yikes





It's not an article, it's an advertisement for *Timeshare Relief*. It's only an alarmist scare job. The only thing Timeshare Relief is going to relieve you of is money from your wallet. They'll want you to give them $3,000 and they'll tell you that they'll dipose of your timeshare for you. What they'll really do is dump it for $1 on E-bay to some unsuspecting buyer. 

DON'T FALL FOR THEIR SCARE TACTICS!


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## mshatty

Another search at 8:28 pm June 24, 2009, no bankruptcy filing for Consolidated Resorts yet.

Looks imminent.

Chapter 7 or 11?  Big big difference.

___________
ETA

If this is a Chapter 7, don't be surprised if the filing is delayed 90 days or more.  This is a reach back period for preferential transfers (non-insiders).  If they going to try to operate in a Chapter 11, they may file sooner.


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## dougp26364

mshatty said:


> Another search at 8:28 pm June 24, 2009, no bankruptcy filing for Consolidated Resorts yet.
> 
> Looks imminent.
> 
> Chapter 7 or 11?  Big big difference.
> 
> ___________
> ETA
> 
> If this is a Chapter 7, don't be surprised if the filing is delayed 90 days or more.  This is a reach back period for preferential transfers (non-insiders).  If they going to try to operate in a Chapter 11, they may file sooner.



From what I'm hearing, it sounds like it will be a Chapter 7 filing. I'd look for signs of a deal being brokered for another developer/management company to step in with a deal to take them over.


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## lv_maui

dougp26364 said:


> From what I'm hearing, it sounds like it will be a Chapter 7 filing. I'd look for signs of a deal being brokered for another developer/management company to step in with a deal to take them over.



I saw one article that said it was Chapter 11.  This does not mean much as an 11 can be converted to a 7 filing by a motion.  I am sure that it would be 11 first.

But I am curious why I have not seen any formal press releases at all.  There is no doubt that the rumor is true but until a filing IS confirmed, you never know.  HOWEVER, you never know if there is behind the scenes negotiations with the large creditors for a sale, etc.


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## dougp26364

lv_maui said:


> I saw one article that said it was Chapter 11.  This does not mean much as an 11 can be converted to a 7 filing by a motion.  I am sure that it would be 11 first.
> 
> But I am curious why I have not seen any formal press releases at all.  There is no doubt that the rumor is true but until a filing IS confirmed, you never know.  HOWEVER, you never know if there is behind the scenes negotiations with the large creditors for a sale, etc.



It would seem rather odd to abruptly shut all sales activities down if all they wanted to do was reorganize. What I've read indicates they've ceased all sales activities and told everyone they don't have jobs. If this isn't shutting down and going out of business I don't know what is. Under the reorganization's I've seen, the company continues to operate under the protection from creditors through the bankruptcy filing. This doesn't appear to be happening in this case. 

But, I've been wrong before.


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## lv_maui

*Chapter 11*



dougp26364 said:


> It would seem rather odd to abruptly shut all sales activities down if all they wanted to do was reorganize.



Who knows who is right or wrong?

First, filing bankruptcy requires the Company to go to the individual Dept of Real Estates and requires a modfiication of the Public Report.  Being in Bankruptcy is a MATERIAL event and needs to be disclosed in the Public Report.

When Sunterra went thru this, some states were OK with just letting them know and some wanted to process a new public report which required the sales centers to go dark for a while.  It was different in all states.  In California, it took a year.  IN Virginia, a couple of days.  My guess would be in Florida, Nevada and Hawaii that these savvy DRE's would take some time to modify the report.  

Second, if they do not have DIP financing arranged, they still do not have the cash to operate.  Until they find receivable or DIP financing, they have no cash to run post petition.

BUT, why they let their sales staff go with no hope to come back supports your contention.


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## lv_maui

*Strange to me*

Strange that no actual filing of BK has taken place based on my internet searches.  But they are def closed down.


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## MULTIZ321

lv_maui said:


> Strange that no actual filing of BK has taken place based on my internet searches.  But they are def closed down.



LV -

You've probably already seen the bankruptcy links at this other Tug thread


Richard


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## lv_maui

*Update on BK*

Talked to a source inside CRI about what is going on.  Naturally the answers were yes or no as I did not want to get him in trouble.  They have not filed, and he did not know when they were going to file.  The lay offs have been extreme and it is just hard to know anything anymore.  Accounting dept is basically gone.  They are concerned about where the money is coming from in ongoing payroll, but everyone knows that they will get paid from someone on time when it is coming up due.

I have a theory that the lenders who have debts with CRI are in discussions with Goldman/Whitehall.  G/W are done with their investment so they are waiting on the lenders to decide what to do.  Are the lenders going to let their loans get sold for cents on the dollar, etc.?   G/W have nothing more to lose as they have given up on their original investment.  Its the lenders who need to make decisions on what they want to do for now.

ps, for all those who said that they did not get paid from CRI, lets caution what you probably are saying.  You got paid your wages, but you did not get paid for vacation time accrued.  That is probably true, but in a BK, vacation pay is an unsecured creditor just like the office supply company.  The BK laws prohibit them from paying you the vacation pay so it is not really CRI's decision.  If you did not get paid wages, it was some dispute in pay.  You probably will never get money from vacation pay.  At Sunterra, employees owed got some stock, like a % on the dollar or a little more, but I sold mine at the $15 share price and was pleased how it turned out.


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## SunSand

I have a Trading Places week at the Tahiti Village in September.  How concerned should I be?  Should I demand a location change, or stick it out and see what happens?  I've already purchased airline tickets.


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## lv_maui

*we are confusing things here*



SunSand said:


> I have a Trading Places week at the Tahiti Village in September.  How concerned should I be?  Should I demand a location change, or stick it out and see what happens?  I've already purchased airline tickets.



We really have to seperate the two main components of any timeshare business:  One is the Sales and Marketing machine, that is what has problems.  Second is the ongoing management of the resorts.  That is not a problem and I would not be concerned about your week.  

You should be fine as long as the HOA's have been run without too much support from CRI as the owner.  My gut says that you will fine though.


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## SunSand

LV Maui,  Thanks for the reality check.  My brain tells me you're right.  What I know of Chapter 11, I'm feeling better about my week.  Although, I am very surprised by the lack of detailed information from Consolidated.  Seems like they dropped a bomb and ran off.  Not a good image for a vacation company.


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## apopo

*Consolidated Resorts*

We live on Oahu.  A few years back we almost bought Consolidated Resorts.  When we reviewed the documents, however, we found that they were leasehold and that the fee was tied into the heirs of William Jefferson Clinton and Ted Kennedy.  On this basis, we backed out the next day.  Seems rather strange that they would be filing for bankruptcy with this kind of money behind them but it may be so.


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## dougp26364

apopo said:


> We live on Oahu.  A few years back we almost bought Consolidated Resorts.  When we reviewed the documents, however, we found that they were leasehold and that the fee was tied into the heirs of William Jefferson Clinton and Ted Kennedy.  On this basis, we backed out the next day.  Seems rather strange that they would be filing for bankruptcy with this kind of money behind them but it may be so.



Some investments return money, some lose money. Apparently, this one was losing money and the investors didn't want to put more capital into a sinking ship.


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## lv_maui

*Still no filing*

I still cannot find that Consolidated has actually filed in BK court.  Very strange that you tell the public but do not do it within a couple of days.  I can only assume that my comments about the owner looking to the lender as to what they are going to do in a BK situation is my only guess.  

I guess this is like GM in that eveyrone knew they are filing BK, but they had to get certain creditors "set up in agreement" before they actually filed.


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## macko420

I spoke with a Consolidated Resorts rep today.  here is what I was told......
There are 2 separate companies, CRI which is the developer and CRM (management) which is the operations division.  

It is CRI that is filing for bankruptcy.  Therefore, they have shut down sales, aren't selling upgrades or offering owner revisits, etc.
She told me that the resort is running normally.  It will not effect owner reservations.  As for the MF's, she did not know but she did say that they had gone up a bit this year (we know) but since Phase 3 had not been planned, it shouldn't make a difference.

I guess we will see..............I think I'll wait a week or so and call back to see if any of the answers have changed!


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## CURIOUS1

*Consolidated Resort Files For Bankrupt*

We are owners of a 2-bedroom Royal Tahitian at Tahiti Village.  After receiving this alert in my email, I called the 1-800-775-8463 number and spoke to a representative and he stated that CRM (Consolidated Resort Management) remains unchanged.  The owners are still able to make reservations.

CRI (Consolidated Resort Inc.) is the company that is being affected.  

Supposedly statements are in the process of being mailed out to the owners.

We will remain optimistic until we hear otherwise.

We are sorry that so many people lost their jobs in this economy.  Hopefully, things will get better.


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## lv_maui

*Complete Confusion*

Consolidated is in a complete state of confusion in the corporate office.  No one knows what the plan is for the future, and GMAC, the lender and key player, has not decided upon any plan for their loans and how to salvage some value.  Employees believe that they will get paid their rightful wages since it would be a very bad and negative PR events for Goldman Sachs.  But the employees have no idea of when and if the corp office announces a complete closure.

In the meantime, the resorts continue to operate normally with Consolidated as the management company.  But since Consolidated is no longer funding subsidies or maintenance fees for the intervals that it owns, the HOA's will need to take a good look at whether they should change management companies.  If the developer does not pay its fees, then why should they have control.  Watch for service levels and condition of the units to start to decline quickly and owners taking a more active role in watching their resort and soliciting new bids for managers.


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## macko420

Are there any other owners reading this thread besides myself and Curious1?


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## dougp26364

lv_maui said:


> Consolidated is in a complete state of confusion in the corporate office.  No one knows what the plan is for the future, and GMAC, the lender and key player, has not decided upon any plan for their loans and how to salvage some value.  Employees believe that they will get paid their rightful wages since it would be a very bad and negative PR events for Goldman Sachs.  But the employees have no idea of when and if the corp office announces a complete closure.
> 
> In the meantime, the resorts continue to operate normally with Consolidated as the management company.  But since Consolidated is no longer funding subsidies or maintenance fees for the intervals that it owns, the HOA's will need to take a good look at whether they should change management companies.  If the developer does not pay its fees, then why should they have control.  Watch for service levels and condition of the units to start to decline quickly and owners taking a more active role in watching their resort and soliciting new bids for managers.



If I was an owner there, my biggest conern would be what's going to happen to MF's. At the very least, with the subsidies gone, MF's will go up by at least that amount. If owners have their last MF statements and if those statements show how much of their MF was being subsidised by CRI, they can expect their MF to jump by at least that amount. If 2009 subsidy payments haven't been made, there may well be a special assessment in the amount of subsidy the CRI failed to pay.


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## lv_maui

macko420 said:


> Are there any other owners reading this thread besides myself and Curious1?



I wonder myself.  I went from thinking that this was all going to end up ok for the owners, but now, I think there is an impending disaster that will occur when the HOA's, who depend to some degree on the developer, will now have to figure out what to do.


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## Kona Lovers

macko420 said:


> Are there any other owners reading this thread besides myself and Curious1?



We're owners at the Kona Islander, managed by CRM, and hope there will be no adverse affects of all this.  

Marty


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## dougp26364

Kona Lovers said:


> We're owners at the Kona Islander, managed by CRM, and hope there will be no adverse affects of all this.
> 
> Marty



Resorts that are sold out and not having their MF's subsidised by the developer probably won't see much of a change. TV owner may be at risk since the resort is relatively new and could have a decent percentage of weeks that have not been sold. If the HOA's budget was based an a certain amount of income from the developer, then that's going to cause them problems. That money will have to come from someone's pocket.

The other issue would be promised amenities that have not been completed. Anything not completed won't be done until this matter has been settled. The developers contract with buyers almost always says that the developer reserves the right to change things with the concept of the resort. At this point, those promises could be considered broken.

FWIW I believe the TV will be all right but, if I owned there, I'd be concerned about my pocket book when MF's come due at the end of the year.


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## lv_maui

Without a developer all of a sudden, HOA's are going to be thrust into deep trouble.  If a resort has been sold out for a couple of years, the problems are much less.  A new resort is going to have many many problems because all of a sudden, the HOA has an owner with multiple units not paying their dues.  Higher maintenance fees is just the start.

GMAC, the lender who lent Consolidated money based on mortgage receivables, will be pivotable as to what happens.  Unhappy owners equals large mortgage receivable defaults which means GMAC has more loan losses.

For those who think this is no big deal comparing it to Sunterra, etc., you are wrong.  Sunterra wanted to emerge from Bankruptcy, Consolidated does not!!


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## dougp26364

lv_maui said:


> For those who think this is no big deal comparing it to Sunterra, etc., you are wrong.  Sunterra wanted to emerge from Bankruptcy, Consolidated does not!!



Good point.

This point does have me wondering why there are reports of a chapter 11 filing rather than a chapter 7. I would think that, if they filed chapter 11, they'd expect to reorganize rather than fold.

This may be more like when Epic went under and was purchased by Sunterra rather than Sunterra first filing. But I wasn't really paying attention to the situation when Epic went under.


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## cleo_32_2000

macko420 said:


> Are there any other owners reading this thread besides myself and Curious1?



I have been scouring the internet daily for more information on what's going on at Tahiti Village. I really like the place and enjoy going there. I like the off strip location. However, like most newbies we overpaid then came to regret our hasty decision. Last time we we there we got them to take back our purchase. They offered us a Quit Claim deed which we signed and had notarized in their office. We were supposed to make the last payment in April but they have taken two more since. When we phone nobody could explain what was going on, just that they had no record of the Quit Claim deed. Apparently it was never filed. Our credit card they were taking payments from has expired. We have received an email saying our next payment is overdue but so far no harassing phone calls. We were allowed to used up our year which ends in Sept. We are visiting the resort on July 12-16th. I hope we can clear this up. I would have considered buying here on the secondary market but now with the bankruptcy I am not so sure. 

Any helpful opinions or advice? Anybody with updates in regard to the bankruptcy please post. 

Anybody who has visited since the announcement also please post.


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## macko420

cleo_32_2000 said:


> I have been scouring the internet daily for more information on what's going on at Tahiti Village.



Have you found any info?  I understand what lv-maui is saying but so far there has been NOTHING from consolidated.  From the phone call I made to them, Phase 2 was nearly sold out and Phase 3 was not yet planned.  so potentially there will be an entire phase unsold (maybe 500+ units) OR Phase 3 will not have any effect at all.
Has anyone tried just acting like a prospective customer and
calling and asking for one of the free mini vacations they advertised?  I wonder what they would say.
Could current owners actually end up financing the remainder of the project if there is one??
lv-maui - can you ask your contact?

++++++++++++++++++++++++++++++++++++++++++

I just tried calling the number listed to request the free mini vacation and all I get is an "all circuits are busy" message.  There is a form to request the vacation online but I didn't want to try that since I am already an owner.


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## SunSand

Consolidated filed Chapter 7 today.  Seems the management company is still separate from the bankruptcy which is good.  But Chapter 7 is pretty much throwing in the towel.

Reported by the Las Vegas Sun Newspaper


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## macko420

Found this to explain the difference between chpt 7 and 11.

http://www.mentalfloss.com/blogs/archives/26086


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## cleo_32_2000

Chapter 7 is basically throwing in the towel as mentioned. We will be definitely asking lots of questions when we are down there next week. In late March they were telling us they were starting to sell Phase 3 and were going to be building a Casino, more pools, etc, etc. I will post my findings.


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## MarkO7111

*Vegas timeshare operator files for bankruptcy*

Las Vegas-based timeshare operator Consolidated Resorts Inc. and affiliated companies started filing for bankruptcy protection Tuesday, as expected, in what promises to be a massive case involving hundreds of millions of dollars in debt.

Consolidated runs 14 properties including the Tahiti Village, Tahiti and Club de Soleil timeshares in Las Vegas; as well as timeshare operations in Hawaii and Florida.

It announced June 23 that because of economic conditions it was closing its sales and marketing operations and would seek bankruptcy protection -- but would keep its resorts open for use by timeshare owners.

The bankruptcy filings for Consolidated and 13 affiliated companies were all filed as Chapter 7 liquidations in Nevada bankruptcy court. In Chapter 7 cases, trustees sell assets and use the proceeds to repay debtors.

But Consolidated spokesman Ken Chupinsky said Wednesday that timeshare interval owners will continue to have full use and enjoyment of the resorts.

He said a management company that did not file for bankruptcy protection will continue to run the condominium associations responsible for each resort, which are owned by the timeshare owners.

"This has nothing to do with the timeshare owners. The timeshare owners are in fine shape," he said.

Affiliated companies named in the bankruptcy petitions filed Tuesday and Wednesday were Destinations Unlimited LLC, Consolidated Maui Inc., Consolidated Orlando Inc., Consolidated Tahiti Inc., Consolidated Kona Inc., Consolidated Realty Inc., Consolidated Media LLC, CRI Travel Holdings LLC, Consolidated Resorts Travel LLC, Lahaina Ticket Co., Soleil PS LLC, Soleil LV LLC and Consolidated Tickets LLC.

The filings totaled thousands of pages. Consolidated Resorts Inc. alone said it had 5,000 to 10,000 creditors -- apparently including many timeshare owners as well as trade creditors and individuals and other parties involved in litigation with Consolidated.

Consolidated Resorts listed assets of $50 million to $100 million and liabilities of $100 million to $500 million.

While the companies didn't spell out any further financial details in their filings, a lack of financing for timeshare buyers and dwindling inventory contributed to the filings, a source involved in the case said.

Besides the curtailment of marketing, the bankruptcies mean further development of Tahiti Village on Las Vegas Boulevard at Interstate 215 will be delayed indefinitely. That property has 860 units and room for expansion.

Tahiti, with 93 units, and Club de Soleil, with 150 units, are both on Tropicana Avenue west of Decatur Boulevard. Neither property has room for expansion.

In 2007, Wall Street investment bank Goldman Sachs Group Inc. said one of its real estate investment funds had made a substantial investment in Consolidated parent ASNY Corp.'s timeshare businesses run by businessman Arthur Spector.

But the economy soured and the Wall Street Journal reported this year that by the end of 2008 the fund, Whitehall Street Global Real Estate Limited Partnership 2007, had written off to nothing its $372 million investment in ASNY.














http://www.lasvegassun.com/news/2009/jul/08/vegas-timeshare-operator-files-bankruptcy/


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## davidvel

Wow what a shock!! Their radio commercials (Tanya Roberts??) were so great :zzz:


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## dougp26364

I wonder how this will play out in court with them filing Chapter 7 for liquidation but, trying to keep what might be the most valuable assest in the management contracts at their resorts.


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## lv_maui

macko420 said:


> Has anyone tried just acting like a prospective customer and
> calling and asking for one of the free mini vacations they advertised?  I wonder what they would say.
> Could current owners actually end up financing the remainder of the project if there is one??
> lv-maui - can you ask your contact?
> 
> ++++++++++++++++++++++++++++++++++++++++++
> 
> I just tried calling the number listed to request the free mini vacation and all I get is an "all circuits are busy" message.  There is a form to request the vacation online but I didn't want to try that since I am already an owner.



You will never get thru to a person. They are not going to book any mini vacations.  Chapter 7 means that they will sell off every asset

Could owners end up financing the remainder?  I do not need to ask them that one.  Sure, they could but it will never happen.  The assets will be sold to the highest bidder.  The owners will never do that.


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## lv_maui

MarkO7111 said:


> But Consolidated spokesman Ken Chupinsky said Wednesday that timeshare interval owners will continue to have full use and enjoyment of the resorts.
> 
> He said a management company that did not file for bankruptcy protection will continue to run the condominium associations responsible for each resort, which are owned by the timeshare owners.
> 
> "This has nothing to do with the timeshare owners. The timeshare owners are in fine shape," he said.
> /[/url]




Ok, someone needs to ask Ken this.  

Now that Consolidated is BK and not paying its bills, that means that they will not be paying its maintenance fees.  BK court will protect you to some degree from past fees but not for future fees, ie post petition.  Since you do not have the cash, then these fees will not be paid.  

So, is the management company ready to foreclose on all of the intervals owned by Consolidated in default?  Are you going to treat Consolidated like all us other owners?

On the budget side, what is going to happen when such a huge chunk of maintenance fees is no longer being paid.  I am sure the budget was not ready for this.  Can you guarantee no special assessments because of this reason in the next 24 months?

I have the answers but i would love to hear what he would say.


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## AwayWeGo

*Who Do You Suppose That Will Be ?*




lv_maui said:


> The assets will be sold to the highest bidder.


D. R. I. ? 

WestGate ? 

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


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## lv_maui

AwayWeGo said:


> D. R. I. ?
> 
> WestGate ?
> 
> -- Alan Cole, McLean (Fairfax County), Virginia, USA.​



DRI, maybe.

Westgate, no since they are having major problems with banks also.

The assets will be split up also so there will be many buyers


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## dougp26364

Wyndham had been attempting to expand with a 3rd resort before the economy put an end to that plan. I'd toss them in as a possible as well. Bluegreen maybe or even Festiva could be candidates. However, in this economy, who will have the money to invest? The most lucrative assest is the management contracts. I doubt that DRI will have much interest unless they can take over the managment contracts. Right now, that's where the money is. Credit markets are still tight and the economy still to weak to believe you'd be able to profit much from sales beyond what these companies already have going.


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## danrucker3

*Another TVV owner*



macko420 said:


> Are there any other owners reading this thread besides myself and Curious1?



Macko -- Yepper, I'm another owner at TVV watching this thread with interest!  TVV has been good to me; and my family and I are planning a major vacation there in 2010; from the postings it should still be there  


Everyone have a good day


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## littlestar

I'm watching this thread with great interest as my sister owns at Sands of Kahana on Maui. I really liked her resort when I stayed there.


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## hugh6m

*I received email notice of Consolidated Resorts Bankruptcy*

We are owners in Sands of Kahana and received notice of the bankruptcy filing from Consolidated Resorts. In exploring for further information, I found that they have filed under Chapter 7, which means that they will liquidate their assets to pay (partially) their creditors. 

CR said that their resort management company is separate and will continue to operate. But the activities desk will be run by someone else--not by people trying to push Consolidated Resorts sales. This doesn't mean that the new activities desk operation won't be pushing some other timeshare sales.

For those of us who are owners in a Consolidated Resorts property, our main concern (assuming their management company is indeed separate) may be with the continuing responsibility for maintenance fees that CR would have in units that they still own. This is probably a greater concern in newer resorts, where CR is likely to be the owner of more inventory.

We did a CR "update" tour at Sands of Kahana when we stayed there in February. They were mostly selling Tahiti Village, but they had a few resales at SoK they could offer to current owners. They wanted $30,000-plus for a 3-BR unit. When we noted that non-developer resale prices were less than half that figure, the salesman (of course) pointed out that one couldn't know if a resale unit had lots of delinquent fees and taxes. When we suggested that resort management could certainly provide information on delinquencies, he said that they didn't do that, because they could easily rent any units with delinquent fees for more than the annual fees. That sounds like the resort management being too much in bed with the developer--many years after SoK was "sold out." And, certainly in the current market, it could be difficult to rent a week for the combined costs of (1) annual maintenance, (2) Maui property taxes (very high), and (3) leasehold buyout fees.

We aren't leaping to dump the 3 weeks we own, but we will certainly want to keep on top of what is going on through the owners' association.


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## macko420

hugh6m,
When did you get your email notice?  We own at TV and haven't heard a word.


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## macko420

*Reply from Consolidated Resorts MANAGEMENT*

I had sent an email about something else and included my concern regarding the bankruptcy.  Here is the response..............

As for your second concern, Consolidated Resorts Incorporated, the developer of the property, has filed for bankruptcy. What this mean to you as an owner, is that the marketing and sales departments have ceased operations. The economy and the lack of financing for the sales and marketing operations and new projects made it impossible to continue the company.

We, Consolidated Resorts Management, have not filed for bankruptcy. The bankruptcy of the Consolidated Resorts Incorporated doesn't affect the on-going operations of the management of the resorts. This will continue without interruption, as it always has. All of the associations' funds are kept in separate accounts for each association.

Please know that since Consolidated Resorts Incorporated developed/ sold the property, rather than managed owners, they will not be sending any formal letters to owners. Nor will we, as we have not filled for bankruptcy and it is a separate company. 

If there are further questions or concerns relating to reservations or the management of your property, please feel free to contact us toll free at 1-800-775-8463.


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## cleo_32_2000

Just got back from Tahiti Village. It was a great stay esp without the sales people around. The Lazy River was the highlight of the trip. I asked the guy at the desk about the bankruptcy when asked if we wanted to do an "owners update" and he seemed to not want to talk about it. He just said it was business as usual and would not affect owners. I did notice some couples being escorted on tours so there are still some sales going on. I know they weren't current owners because I overhead some of what the salesman was telling them. 

I got an upgrade to Bora Bora no problem and was also located where I wanted. Shuttles ran smoothly. Activities scheduled by the resort were somewhat scaled back and lame.

I used the spa this time. Highly recommended. I went to Tahiti Joes to give it one last try and it still sucks. lol...worst waitress ever, barely edible food. Denny's is better.


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## lv_maui

cleo_32_2000 said:


> I did notice some couples being escorted on tours so there are still some sales going on. I know they weren't current owners because I overhead some of what the salesman was telling them.
> .




This is shocking to hear that someone was conducting sales.  I called my person at Consolidated and the response was, "Whomever they are, they are doing it without our permission, and in fact, they are doing it in violation of Nevada Real Estate law".  Whomever in the management company that is allowing this to go on, is in trouble! !

So, I wonder what the real story is with this supposed sales tour.


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## Gerry

I'm an owner at Sands of Kahana on the resale market and received a formal letter in the mail from SOK stating that the BK does not have an impact of SOK.  Just wondering, should I believe it.  They claim it is a separate mgmt company, and only the sales and marketing of Consoliated is BK.  Well I just we need to wait and see what impacts this will have


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## Kona Lovers

Just got emails from Consolidated Resorts Management to owners of Kona Isalnder and Gardens of West Maui that was sent to reassure owners of these resorts that the Management side is solvent and the resorts' finances are secure and everything regarding reservations and ownership will remain unaffected.
They used the analogy of buying a car to illustrate their point.  They said the developer is like a car dealer.  When you buy a car, if the dealer goes bankrupt, you still own and have use of the car, provided you pay maintenance fees and all.
We own at the Kona Islander, but not at Gardens of West Maui, so don't know why we got both emailings, as they were addressed specifically in the bodies of the letters to the owners of those particular resorts.

Marty


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## giri@fun

We own a 2 bedroom timeshare at Tahiti Village in Las Vegas. A developer from Florida has called to make an offer to purchase the time share at the same price that we had paid. Is it worth while selling the property or is it better to hold on and see what happens? Could any one know anything?


Giri


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## macko420

giri@fun said:


> We own a 2 bedroom timeshare at Tahiti Village in Las Vegas. A developer from Florida has called to make an offer to purchase the time share at the same price that we had paid. Is it worth while selling the property or is it better to hold on and see what happens? Could any one know anything?
> 
> 
> Giri


Hmm, that is a little hard to believe.  i would be suspicious of it.  Just today, I got an email from Consolidated.  Here it is below............I would not do anything until I checked this developer out first.  Above all, do not give him any money to try to sell it for you or anything like that!
Also, I doubt that a 'developer' would be trying to buy individual units.  Most likely, a true developer would be looking to actually develop the rest of the resort.  Maybe I'm wrong but............

July 24, 2009

Dear Tahiti Village Owner:  
There has been much news and commentary regarding the recent bankruptcy filing of Consolidated Resorts, Inc. and its related companies. Some has been correct and much has been wildly inaccurate and potentially dangerous for you.  

First and foremost – Neither the Tahiti Village nor Soleil Management is included in the bankruptcy. Your Vacation Club is financially and operationally sound and every timeshare owner will receive the full benefit of usage and exchangeability of their timeshare. The resorts, reservations department and customer service department are fully up and running to serve your vacation needs. As always, timeshare owners are invited to call 800-775-8463 with any questions.  

Also – for those of you that have outstanding balances on your purchase contracts, the payment address remains the same and all owner payment processing is continuing without interruption.  

Perhaps the best way to understand the situation is to envision that you bought a car and later learned that the car dealer closed its doors. You still own your car and will have full use and enjoyment of it (assuming that you make your payments!). The notion that the dealer discontinued its business has nothing to do with your use of your car.  

Unfortunately, some owners have received telephone calls or emails from various individuals attempting to buy the owner’s week with stories of how the projects are going to be closed or that they will lose their rights to the project.  This is entirely false. We advise all owners to be very careful when talking to people soliciting the purchase of their week based on the bankruptcy of the developers. These individuals are not associated with the developers, the management companies or the bankruptcy court in any way.  They may be using scare tactics to obtain your credit card information.  

As always, your management company and customer service departments are here to serve you. Please feel free to call 800-775-8463 if you need us.

Very Truly Yours,

Soleil Management


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## Kona Lovers

FWIW

I've been to the CRMLV website where I'm supposed to be able to pay mf and make reservation requests.  They have tried to reassure current owners of Consolidated managed properties that the bankruptcy has nothing to do with ongoing management operations, yada, yada.
I now get error messages that their security certificate has been revoked.  You can get to the home page, but the error message comes when you click owner login or the contact us page.
This may or may not have anything to do with other concerns, but it is quite disturbing to us.

Just called them and they say it's just a problem online, that all is well with everything else.  We sure hope so.....

Marty


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## tremain

*Any New News?*



lv_maui said:


> I have had several confirmations that Consolidated Resorts filed for BK today.  Not sure what Chapter.  That includes Lahaina Ticket company.  Anyone associated with them should beware about tickets, etc.



I am surprised there is not more comments about the Consolidated Development Company's BK.

I think all of us who own Consolidated units have all received the notification from Consolidated Management of the BK and that our units will be managed the same as always without the Developer. We had just taken a "free" trip at the end of May 2009 to Las Vegas to stay in the Tahiti Tower and attended the "presentation". Nothing was even indicated of the future BK. Sales was busy with many "potential buyers". I assume the land purchase for the Sands of Kahana was taken care of by the Management company and therefore will be okay. 

One worry I believe is that the Developer did pay fees for the unsold units toward the annual operating budget. I fear this will have a negative impact on the next budget and therefore maintainence fees.  

Anyone have more direct information from the inside?


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## ecwinch

I would think the concern would extend beyond the Developer payment of m/f on their inventory. Are the HOA's at these resorts still developer controlled?

And when I stayed there last Sept, I thought development at that site was not complete. I distinctly remember talking to a couple that had bought at TV, but whose building had not been built yet.


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## macko420

Maui1984 said:


> We had just taken a "free" trip at the end of May 2009 to Las Vegas to stay in the Tahiti Tower and attended the "presentation".



Where/what is the Tahiti Tower?  I've never heard of it and own at TV.


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## SteveH

*Kahana Villa Vacation Club - should I walk away?*

Sometime has passed since the last postings regarding this thread.  A few days ago I won an ebay sale of a 2BR EOY at the Kahana Villa Vacation Club.  Being an older resort, should this be a relatively safe buy?  Has anyone heard anything new regarding the bankrupcy and whether there truly is a disconnect between the management company and the developer?
I didn't pay a lot for the week but the closing and transfer fees still amount to an amount I wouldn't want to lose.  My first week of usage doesn't start until 2011.  Hoping someone can shine some light.
Steve


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## Kona Lovers

SteveH said:


> Sometime has passed since the last postings regarding this thread.  A few days ago I won an ebay sale of a 2BR EOY at the Kahana Villa Vacation Club.  Being an older resort, should this be a relatively safe buy?  Has anyone heard anything new regarding the bankrupcy and whether there truly is a disconnect between the management company and the developer?
> I didn't pay a lot for the week but the closing and transfer fees still amount to an amount I wouldn't want to lose.  My first week of usage doesn't start until 2011.  Hoping someone can shine some light.
> Steve



You'll probably be ok with this property.  We own at another property managed by them and everything is working great.  The Hawaii properties are under the management company, with was not involved in the financial problems.  I posted earlier some concerns, however, all has worked out well.
Hope this helps.

Marty


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## Fitzriley

*Consolidated Resorts in Wall Street Journal today*

A battle is brewing over the remains of an ill-fated time-share investment made in 2007 by a Goldman Sachs Group Inc. real-estate fund.

Earlier this year, Goldman's Whitehall Street Global Real Estate Limited Partnership 2007 walked away from its $372 million investment in Consolidated Resorts Inc., a Las Vegas time-share developer with resorts in Las Vegas, Orlando, and Hawaii. Consolidated filed for liquidation under Chapter 7 of the bankruptcy code in July. 

But the bankruptcy trustee's plan to market the assets has run into opposition from Arthur Spector, the longtime head of Consolidated, who stayed with the company after the Goldman deal and signed the bankruptcy petition. ASNY Co. LLC, a company owned by Mr. Spector, filed a brief last month challenging the marketing plan. The brief drew a scathing response from the trustee, William A. Leonard Jr. "A cynic might accuse ASNY of working against the coordinated sales process for a very selfish goal-to drive down the value of the Estates' assets so that it can pick up the pieces through a disjointed, unorganized process for 'a steal,"' Mr. Leonard wrote in a court filing Nov. 15. 

Mr. Leonard says he hopes the sales procedures for the Consolidated assets will be determined at a hearing Thursday. Mr. Spector didn't return a call requesting comment.


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