# Diamond Resorts Bankruptcy??



## Kauai Kid (Oct 14, 2011)

Not saying Diamond is bankrupt but many corporations much bigger than Diamond have declared bankruptcy.

What happens to the funds Tuggers paid into the Diamond special assessment fund if Diamond goes bankrupt?????


Sterling


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## T_R_Oglodyte (Oct 14, 2011)

Kauai Kid said:


> Not saying Diamond is bankrupt but many corporations much bigger than Diamond have declared bankruptcy.
> 
> What happens to the funds Tuggers paid into the Diamond special assessment fund if Diamond goes bankrupt?????
> 
> ...



I presume nothing. The money isn't going into Diamond's coffers.

The more relevant question is what happens if the Association of Apartment Owners for Point at Poipu goes bankrupt.


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## Passepartout (Oct 14, 2011)

Kauai Kid said:


> Not saying Diamond is bankrupt but many corporations much bigger than Diamond have declared bankruptcy.
> 
> What happens to the funds Tuggers paid into the Diamond special assessment fund if Diamond goes bankrupt?????
> 
> ...



Like any other bankruptcy, U.S BK court rules that cash on hand (and as accounts collectible) is listed as an asset and charged against debt. Whether the assets come from tuggers or anywhere else isn't the issue. If it's not paid, but owed, it's still an asset until declared otherwise by the BK trustee. 

Jim


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## Carolinian (Oct 16, 2011)

I would be highly surprised if they went bankrupt.  They sold off the crown jewel of their European Collection, Carlton Court in central London, back before the subprime hiccup, so they got a ton of cash for that.  They have frogmarched the individual week owners out of Wychnor Park, setting it up for possible sale, and from reports on European boards are in the process of selling resorts in Spain and France.  A points developer can easily sell a resort intact if it is all points members and no individual members.  There may be some US resorts in this situation, but I do not know.  In short, DRI can put its hands on cash if it needs to, rather easily.


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## Carolinian (Oct 17, 2011)

There is another source of DRI cash I had forgotten that also means a bankrupcy is extremely unlikely.

Some of the early Sunterra resorts in Europe were owned in fee simple by Sunterra but sold as timeshare on a leasehold basis.  DRI acqured Sunterra's rights to the reversions of the freeholds when those leases expire.  Some of them are now close to expiry.  When the timeshare leases do expire, DRI gets the properties free of any timeshare interests and can do what they want with them, including selling them.


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## Margariet (Oct 18, 2011)

Kauai Kid said:


> Not saying Diamond is bankrupt but many corporations much bigger than Diamond have declared bankruptcy.
> 
> What happens to the funds Tuggers paid into the Diamond special assessment fund if Diamond goes bankrupt?????
> 
> ...



Why post a message with this title? You also posted a message on October 8 about Grandview Las Vegas being bankrupt. The titles and messages suggest very serious things but are not based on facts.


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## ampaholic (Oct 18, 2011)

Margariet said:


> Why post a message with this title? You also posted a message on October 8 about Grandview Las Vegas being bankrupt. The titles and messages suggest very serious things but are not based on facts.



I agree - why do you seem to favor starting these hyper-controversial yet totally fact free threads?


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## Kpaul (Oct 18, 2011)

*Diamond Resorts Bankruptcy or just crooks*

Diamond could go BK pretty easily. They have 20+ corporations that they can move money in & out.  Pretty easy to make some profitable and then BK on the others.....It's done all the time!
Diamond owed money to the Kaanapali Beach Club Association, basically an interest free loan.  Ask Bill Burns who was on the board at the time.  Bill was not too happy but the Diamond controlled board just buries it under the carpet.  Look up every single resort that Diamond owns (woops, I mean manages) and you will find 3 Diamond employees or affiliates out of a 5 person board.  I've looked up dozens of their resorts and they control the board......you have no say folks!

I didn't read in the Diamond Resorts Newsletter that the money was going to be held by the association, did you?
Doubt it & I'm sure they added a construction management fee as well as an administration fee and the contractor will kick back some money as well.

Do some homework on the pool renovation at the Kaanapali Beach Club and if you are really good, you will find out that Diamond brought in a company from Oregon (owned by a Diamond relative) over a company in Hawaii that had a substantially lower bid.  Pretty sad when you take the work from the local economy and pad your pockets.  


http://nvsos.gov/sosentitysearch/CorpSearch.aspx

Check out this website for Nevada Secretary of State

Type in a business search for Diamond Resorts and you will see approximately 28 registered corporations.
Can  you imagine the commingling that could go on between their own companies?

You will see that the great majority are all LLC's (Limited Liability Corporations) which is a vehicle for a company to collapse and not be liable..... no surprise there!

It would not surprise me that they have corporations or LLC's in other states such as Florida.
The only way they stopped Capone was with the IRS.........


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## Kpaul (Oct 18, 2011)

*More Diamond Resorts LLC's*

Well I posted so I should back up my allegations.
A quick glance to Florida's LLC's has Diamond Resorts owning 10 companies and a California search showed 6 more.

Hmmm....wonder why the resorts are paying millions in management fees


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## ampaholic (Oct 18, 2011)

*News Flash: Disney Considers Bankrupcy*

This just in - in a recent episode of AFV Tom Bergeron used the word "Bankruptcy" on air.

Does this mean the mother ship of ABC is ready to stiff all it's shareholders?

Duh - no

------

See, I can do it too


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## Kauai Kid (Oct 18, 2011)

ampaholic said:


> I agree - why do you seem to favor starting these hyper-controversial yet totally fact free threads?



I stated very clearly "*Not saying Diamond is bankrup*t"

There are lots of fact free threads floating around regarding Diamond on TUG.

My opinion of Diamond is pretty low.  You buy a house and you get an inspector to go over it and point out the defects.

Diamond bought a multi million dollar resort and who knows if it was inspected.  

Sterling


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## PigsDad (Oct 18, 2011)

Kauai Kid said:


> I stated very clearly "*Not saying Diamond is bankrupt*"



Yes, _inside _your post you stated that, but the thread title is very misleading.

Sort of like someone posting a thread with a title of:

* "Kauai Kid Kicks Puppies??" *​with the post saying:

Not saying that Kauai Kid kicks puppies, but I'm sure there people who live in Texas that do kick puppies.​
Surely you can see that the title is very misleading.  (And don't call me Shirley.  )

Kurt


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## timeos2 (Oct 18, 2011)

Gosh - I never thought Sterling would be mean to a living thing like a puppy!

Oh, he isn't. I see now the opening statement was a bit misleading...


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## ampaholic (Oct 18, 2011)

*Did you hear about Stirling and the puppy?*

They are trying to keep it quiet, but I heard Sterling kicks Texans or Puppies one or the other. Well I'm not going to take any chances - I'm going to gossip about him until he repents of kicking both Texans *and* Puppies.

-----

Gossip and rumor mongering would be funny if it weren't so sad.


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## Kauai Kid (Oct 20, 2011)

Aloha Margariet, Kurt, John, and Rick:

Have you seen the recent post regarding Alii Kai II special assessment with no backup data?


"E kuhikuhi pono i na iki a me na au nui o ka 'ike."  'Olelo No'eau, Pukui 




Sterling


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## ampaholic (Oct 20, 2011)

A good teacher would include a link.

“Ma ka hana ka ike.”


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## timeos2 (Oct 20, 2011)

ampaholic said:


> A good teacher would include a link.
> 
> “Ma ka hana ka ike.”



"E kuhikuhi pono i na iki a me na au nui o ka 'ike."

 Instruct well in the little and the large currents of knowledge.

*A'ohe hana nui ka alu'ia. *


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## ampaholic (Oct 20, 2011)

Kauai Kid said:


> -snip-
> 
> Have you seen the recent post regarding Alii Kai II special assessment with no backup data?
> -snip-
> Sterling



http://tugbbs.com/forums/showthread.php?t=156575&highlight=Alii

I found it -- Oct 5 2011 lizfox posted a question about Alii Kai II titled:

Alii Kai II Special Assessment? inside she asked if any owners could fill in her lack of data about a rumor she had heard.

Well Sterling - I see that thread got weird because of edits, but the gist I get just confirms my idea that gossip and rumor mongering would be funny if they weren't so sad.

I have two observations to add:

1. A post questioning a SA is orders of magnitude less incendiary than one questioning the bankruptcy of a resort.

2. Just because someone else does it (lizfox) - doesn't make it right.

I respect your right to start whatever thread you want - but I am an owner at Grandview and didn't appreciate a thread suggesting they were bankrupt,
Especially considering that the story quoted was years old and about another company altogether.

... eom


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## ampaholic (Oct 20, 2011)

timeos2 said:


> "E kuhikuhi pono i na iki a me na au nui o ka 'ike."
> 
> Instruct well in the little and the large currents of knowledge.
> 
> *A'ohe hana nui ka alu'ia. *



Thanks for sharing with the task John


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## Carolinian (Oct 21, 2011)

Somehow, I don't think DRI could be confused with a puppy.  A wolf, maybe, but not a puppy.  Ask the former deeded weeks owners at Wychnor Park.


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## ampaholic (Oct 22, 2011)

Carolinian said:


> Somehow, I don't think DRI could be confused with a puppy.  A wolf, maybe, but not a puppy.  Ask the former deeded weeks owners at Wychnor Park.



Huh?

I think you misread the rumor mongering - no DRI. We were just "not suggesting" that Sterling kicks or doesn't kick either real Texans or real puppies - we just aren't sure which.

:hysterical: :rofl: :hysterical:


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## MOXJO7282 (Oct 23, 2011)

PigsDad said:


> Yes, _inside _your post you stated that, but the thread title is very misleading.
> 
> Sort of like someone posting a thread with a title of:
> 
> ...


This is not a fair comparison at all. It may not be likely but there is certainly enough negative info flying around that makes it at least possible if not probable. The Kaui Kid comment is completely without any merit so it not even a close comparison.

To me this is someone just stirring up the pot.


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## mslvasquez (Oct 24, 2011)

*Best use of my excess energy re: Special Assessments*

I am putting my energy to use taking a look at the E-Bay ads for the Point at Poipu to see if they are disclosing the SA there.  I purchased a "deal" there and found out about the SA afterwards.  In my case, the seller is a charity who didn't know--he sent me a copy of the estopel dated 2 weeks before.  I told the seller that we would not be signing closing documents unless the donors paid the entire SA in full---which they have done as of last week.  We understand the remaining risks ...but, for a whopping $19 (because the charity pays the closing, transfer, recording fees) to purchase an ocean view, 2 bedroom on Kauai was worth the risks to us.

So, if I find an E-Bay ad that isn't disclosing the SA---I send the seller the information along with a link to the letter from Diamond to force them to resolve it by disclosing or by taking it off E-Bay (both have occurred) and I am on number four now.  

Would be fun if our entire TUG would help out---and would at some point (in a perfect world) get the E-Bay sellers to do some homework on the properties they are selling.  Try it...
+++++++++++++++++++++++++++++++++++++++++++++++
--- The below is not my charity seller---it is another listing I e-mailed ---

Dear xxxxxxxxxxx,
No, the listing indicates $0 special assessment is 2011, which is true.

I am updating the listing to show the special assessment.

From: eBay Member: xxxxxxxxxxxx <>
To: 
Sent: Sunday, October 23, 2011 9:54 PM
Subject: Details about item: xxxxxxxxxx sent a message about Point at Poipu Timeshare Koloa, Kauai Hawaii #150680007485

Dear mjb27,

The E-Bay listing indicated $0 special assessments on this property, but there is a $5,893.32 assessment there for a Poipu Point-Water Intrusion Assessment? 
https://www.diamondresorts.com/hoa/20111005/PoipuOwnerLetterandInserts.pdf 
- xxxxxxxxxxxx


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