Recent Destination Club News

[AKTHUE]

Has anybody heard that this has been closed?

It would make sense to close it since most of the operatios in in KC. The Orlando office is for JT convenience (and leased from him too). Don't need it anymore.

 

[OneMoreTime]

Orlando will be the last office to close because JT will be the last employee. He does not have the dignity to leave the room. Look at the DIP funding- they are paying that lease, and his payroll.

 

[ClubsRDead]

While I wouldn't encourage anyone to just run out and join Q under the terms of the offer we received last week - I don't think we've heard the last of them. It appears that the attempt by JT / UE to get a restraining order on Q in court was rejected today by the Judge.

Turns out JT and company either borrowed or owe some money to Q, and subject to repayment terms, which they violated (short for "didn't pay,") just like everyone else on this planet -- Q was given the ability to market the membership or a portion thereof.

Way to go JT -- what did you use that money for??

 

[DCTraveler]

Protecting Director Assets in Troubled Times

Hello Again Everybody! Here is the profile of the guy supposedly doing the restructuring. In case anybody was working with the thought that possibly they were trying to do the right thing and save the club or our deposits -- they are not. If you look at Sheon Karol's speciality (he just wrote a book about it) it is Protecting Director Assets in Troubled Times. They are using our money to pay him to protect all of their money. Perfect! Thanks Rich and Jim!!!

DC Traveler

Sheon Karol


Sheon Karol has a unique combination of turnaround, executive and legal experience spanning more than 20 years, with an emphasis on out-of-court restructurings, bankruptcy proceedings and mergers and acquisitions. Mr. Karol is an innovative, collaborative leader with expertise in a wide variety of industries, including:
• Agriculture
• Commodities
• Consumer goods
• Food and grocery • Medical research
• Real estate
• Retail
A seasoned executive, Mr. Karol has led several prominent restructuring engagements and played an essential role in numerous others. He has served in several management and interim management positions, such as chief restructuring officer (CRO) and senior vice president. In addition, he has renegotiated the debt of companies in a variety of industries. Noteworthy engagements include:
• Financial advisor to Grupo Mexico in its successful retention of equity in ASARCO's contested confirmation hearing
• CRO of a $1 billion private company
• Managed more than $200 million in asset sales for an $8 billion supermarket chain in Chapter 11, where he successfully sold 326 stores in a 90-day period and directed claims reconciliation after the company emerged from bankruptcy
• Provided general bankruptcy advice and managed operations for the restructuring of certain business units affiliated with a $250 million medical diagnostic company
• Guided the auction and sale of a $12 billion farm cooperative’s nitrogen fertilizer business, netting $25 million more than the stalking horse bid
• Senior vice president, general counsel and the board secretary of a national kitchen and housewares retailer with more than $400 million in annual sales
• The Caldor Corporation, a 145-store discount retailer, with approximately $3 billion in annual sales
Prior to his corporate experience, Mr. Karol was a lawyer with a leading New York firm. His practice focused on mergers and acquisitions, private placements, securities, financing, bankruptcies and workouts.
Mr. Karol holds a bachelor’s degree from Yeshiva College and his juris doctorate from Yale Law School. He is a frequent speaker at restructuring and legal conferences and recently co-authored “Protecting Director Assets in Troubled Times” in The Corporate Board.

 

[Kagehitokiri2]

the article >
http://www.crgpartners.com/files/news/CorporateBoard.KarolFinz.pdf

Protecting Director Assets
In Troubled Times by Sheon Karol and David Finz
Two years of economic turmoil have led some companies to extreme survival measures, including bankruptcy, mergers and major restructurings. Hard times not only endanger companies, but their directors and officers as well. Liability threats increase, often at the same moment a major corporate change puts board members’ insurance coverage in peril. What can directors do to protect themselves while protecting the company?

someone just sent me the thing from CRO to UE members. definitely interesting - timing, wording, etc.

from Q

The Club's La Samanna enclave is a huge hit among Members. We initiated the enclave with two villas, Colibiri and Fregate, and are now opening two additional villas, Pelican and Egrette, for Member stays beginning Saturday, January 8, 2011.

 

[ClubsRDead]

Sounds about right. No wonder he got bent over this past weekend by the board of managers and equity holders. Who knows, maybe he conspired with them and got their board payments, payroll and even anticipated board legal fees covered in the DIP because this is his specialty. Also explains his weak attempts at emailing us acting like he is in charge OF THE BANKRUPTCY, only, because he's certainly not in charge of the company. Too bad no one is in charge of member reservations and accommodations.

 

[Desties]

I got the La Samanna email -- and I have NEVER received email from Quintess.

I'm fairly sure that Q must have raided all of the UE contacts, because the email I got it is rarely used (outside of UE-related emails).

I'm guessing that Q had all 1200 member infos, and then cherry picked the 200 or so most likely to fall for last week's offer. It wouldn't surprise me if we ALL get a sweetened offer.

Is there a UE member that did NOT get the Q email about an hour ago about the new enclave properties?

 

[Baily]

Is there a UE member that did NOT get the Q email about an hour ago about the new enclave properties?[/QUOTE]

I did not receive the offer...but I'm sure it's because I'm still PE...

 

[ClubsRDead]

Is there a UE member that did NOT get the Q email about an hour ago about the new enclave properties?

I did not receive the offer...but I'm sure it's because I'm still PE...[/QUOTE]

You're not missing anything. The BS offer to join last week was one thing, supposedly to about 200 or so. The mailer tonight was just a mass mailer to members (or prospects, I assume) announcing new properties. Have to hand it to Q and the folks at Club Holdings; they're timing on everything is right on...

 

[Nwtm74a]

Q offer

I received an e-mail from Q tonight. I have never had any contact with them before. I'm legacy UR.

 

[ClubsRDead]

I received an e-mail from Q tonight. I have never had any contact with them before. I'm legacy UR.

I think it's fair to say we're all going to get all sorts of emails now. Don't be surprised about having no prior contact, they already had all of our info as part of the mismanaged JT / RK process related to the sale of a property in NYC that we still owed them money on for the closing.

And, even M Residence Club emailed me tonight - latest offer, "six months of free dues." The curse of the McGrath days right there....

We're all fair game now. Sure as hell JT doesn't have a plan to salvage this.

Maybe we all sue him / RK for distributing our confidential info...

 

[TarheelTraveler]

UE vs. Quintess

http://www.bloomberg.com/news/2010-09-22/lehman-abitibi-ultimate-escapes-sea-island-bankruptcy.html

"Ultimate Escapes Sues Competitor Club Holdings

Ultimate Escapes Inc., the destination club operator that filed for Chapter 11 protection on Sept. 20, started a lawsuit yesterday against Club Holdings LLC, one of its competitors.

The complaint says that the two companies entered into a confidentiality agreement in April allowing Club Holdings, based in Broomfield, Colorado, to investigate the possibility of an acquisition. The complaint alleges that Club Holdings, operating as Quintess, used information obtained through the confidentiality agreement to solicit about 200 of Ultimate Escapes’ members.

Ultimate Escapes wants the bankruptcy judge in Delaware to sign a temporary restraining order halting use of the customer lists. The company contends contacting customers violates the confidentiality agreement and the so-called automatic stay resulting from the Chapter 11 filing.

The complaint also alleges Club Holdings received a fraudulent transfer. The basis for the allegation isn’t known because the complaint was redacted to blank out relevant allegations.

Ultimate Escapes, based in Kissimmee, Florida, intends to sell the business to secured lender CapitalSource Finance LLC unless a better offer turns up at auction on Oct. 20. It owns or leases 119 residences in 45 destinations and has about 1,250 members. The June 30 balance sheet had $189 million in assets against total liabilities of $222 million.

The case is In re Ultimate Escapes Holdings LLC, 10-12915, U.S. Bankruptcy Court, District of Delaware (Wilmington)."

 

[ClubsRDead]

From Kage re Sheon's profile: "Hard times not only endanger companies, but their directors and officers as well. Liability threats increase, often at the same moment a major corporate change puts board members’ insurance coverage in peril. What can directors do to protect themselves while protecting the company?"

This is interesting. Certainly fits with what CRG is not doing to further the club business and cater to mgmt and board demands. Look at the DIP cash sheet, they have about 300k in there for D&O Tail Coverage, and allowed for $50k of legal for the board. Think they are expecting the worst?

 

[Aladdin69]

Divide and Conquer!!

:zzz: Like most of you...I sit here each night watching the posts fly back n forth...always wondering where is the ANGER, where is the frustration, where is the the togetherness that we all need right now?? We're drowning...and you're describing the water? Shouldn't we be banding together to try and come up with some course of action...instead of sitting here and analyzing what happened?? We all know what happened!! Kinda hate to admit it, but we all sat back and watched as Jimmy Boy & Co., picked our pockets...over and over again!! I guarantee he had us all rated as to how gullible each of us really were! Probably ...those were the first recipients of Q's, first offers? We've heard from DCWORKER, about mismanagement etc... Sweetheart Deals, leased Bentleys ...on n on!! Now, he's got the Fox watching the Hen House!!! How about we all get off the Pot...hire some representation collectively, and stand up for our interests?? Jimmy has successfully kept us apart for years now...even buying the DC4M site, to keep us from banding together and sharing information...WHY??? Because he's scared of us organizing our efforts, and kicking his teeth in!! Let us do just that...It won't be easy...but it will be worth it... Otherwise...Jimmy Boy, and friends are going to slip away into the night, while we all sit here and analyze offers and equations, and speculations....These guys know what they're doing , and they're about to get away with it!!! With a small check, and less effort than we all put into these posts...we can at least begin the discovery process! If it looks promising, and I think it will...we can move forward with some formal action against those that are culpable? It doesn't look like any of us are going to get any $$$, out of this, so let's make sure JT, & Co...don't either!!!

Hello Again Everybody! Here is the profile of the guy supposedly doing the restructuring. In case anybody was working with the thought that possibly they were trying to do the right thing and save the club or our deposits -- they are not. If you look at Sheon Karol's speciality (he just wrote a book about it) it is Protecting Director Assets in Troubled Times. They are using our money to pay him to protect all of their money. Perfect! Thanks Rich and Jim!!!

DC Traveler

Sheon Karol


Sheon Karol has a unique combination of turnaround, executive and legal experience spanning more than 20 years, with an emphasis on out-of-court restructurings, bankruptcy proceedings and mergers and acquisitions. Mr. Karol is an innovative, collaborative leader with expertise in a wide variety of industries, including:
• Agriculture
• Commodities
• Consumer goods
• Food and grocery • Medical research
• Real estate
• Retail
A seasoned executive, Mr. Karol has led several prominent restructuring engagements and played an essential role in numerous others. He has served in several management and interim management positions, such as chief restructuring officer (CRO) and senior vice president. In addition, he has renegotiated the debt of companies in a variety of industries. Noteworthy engagements include:
• Financial advisor to Grupo Mexico in its successful retention of equity in ASARCO's contested confirmation hearing
• CRO of a $1 billion private company
• Managed more than $200 million in asset sales for an $8 billion supermarket chain in Chapter 11, where he successfully sold 326 stores in a 90-day period and directed claims reconciliation after the company emerged from bankruptcy
• Provided general bankruptcy advice and managed operations for the restructuring of certain business units affiliated with a $250 million medical diagnostic company
• Guided the auction and sale of a $12 billion farm cooperative’s nitrogen fertilizer business, netting $25 million more than the stalking horse bid
• Senior vice president, general counsel and the board secretary of a national kitchen and housewares retailer with more than $400 million in annual sales
• The Caldor Corporation, a 145-store discount retailer, with approximately $3 billion in annual sales
Prior to his corporate experience, Mr. Karol was a lawyer with a leading New York firm. His practice focused on mergers and acquisitions, private placements, securities, financing, bankruptcies and workouts.
Mr. Karol holds a bachelor’s degree from Yeshiva College and his juris doctorate from Yale Law School. He is a frequent speaker at restructuring and legal conferences and recently co-authored “Protecting Director Assets in Troubled Times” in The Corporate Board.

 

[Kagehitokiri2]

Ultimate Escapes Inc., the destination club operator that filed for Chapter 11 protection on Sept. 20, started a lawsuit yesterday against Club Holdings LLC, one of its competitors.

The complaint says that the two companies entered into a confidentiality agreement in April allowing Club Holdings, based in Broomfield, Colorado, to investigate the possibility of an acquisition. The complaint alleges that Club Holdings, operating as Quintess, used information obtained through the confidentiality agreement to solicit about 200 of Ultimate Escapes’ members.

Ultimate Escapes wants the bankruptcy judge in Delaware to sign a temporary restraining order halting use of the customer lists. The company contends contacting customers violates the confidentiality agreement and the so-called automatic stay resulting from the Chapter 11 filing.

The complaint also alleges Club Holdings received a fraudulent transfer. The basis for the allegation isn’t known because the complaint was redacted to blank out relevant allegations.

uh

It appears that the attempt by JT / UE to get a restraining order on Q in court was rejected today by the Judge.

Turns out JT and company either borrowed or owe some money to Q, and subject to repayment terms, which they violated (short for "didn't pay,") just like everyone else on this planet -- Q was given the ability to market the membership or a portion thereof.

Way to go JT -- what did you use that money for??

source?

clearly this is going to get ridiculous.

from same article as above, re sea island resort (with ER enclave)

An auction for the properties is scheduled to take place on Oct. 11. A company affiliated with Oaktree Capital Management LP and Avenue Capital Group is under contract to buy the business for $197.5 million. The properties are on or near St. Simons Island and Sea Island, Georgia.

 

[TarheelTraveler]

UE

A lot of filings in the bankruptcy case. I took a brief look and thought a number of things were interesting.

The hearing for the temporary restraining order and preliminary injunctive relief against Club Holdings (Quintess) is scheduled for September 29.

UE is trying to file the member information under seal, so that competitors can't poach the information. (Of course, it also makes it harder for members to communicate with each other.)

Some budgeted expenses for the next month. Directors and officers' tail coverage (i.e., continuing coverarge) - 265K. Over $1M in professional fees. It's clearly expensive to do a bankruptcy filing, particularly one with this complexity.

4 potential buyers submitted letters of interest in buying all or part of the UE assets.

 

[Desties]

4 potential buyers submitted letters of interest in buying all or part of the UE assets.

Well, that part is certainly encouraging. 4 potential bidders is better than one or none -- and adds weight to the damage that Q is causing by attempting to poach some of us with direct offers and ALL of us with unsolicited marketing material.

This is getting interesting.

 

[DCTraveler]

I am pissed!

Sorry if I gave the impression that I am not REALLY PISSED OFF at this situation. I am. I had hired legal representation about 6 months ago, but they wouldn't settle. My attorneys were about to file and were given the heads-up of the bankruptcy, so they didn't think it was worth my money to go through that process if it was true and a few weeks later it turned out to be.

A couple of questions for those more legal minded than I am. If they did something wrong (and they have) and we could prove it, then wouldn't their director's and officer's insurance kick in to pay us off?

If they have 222 million in liabilities and 188 million in assets, then wouldn't that mean they could liquidate and pay us back 85% of our deposits or am I getting that wrong? I assume that our fully refundable deposits have to be included in the 222 million in liabilities, right?

 

[willmyclubmakeit]

thoughts

remember that the lenders have a security position in the assets first (at least capital source) and then there are people with the RAP payments but I would bet that most of the value if not all will go to Bankruptcy costs and the lenders with little if anything left unless some funds come from sources that you suggest like D&O.

 

[Kagehitokiri2]

in the list of creditors >

CLUB HOLDINGS, LLC
11101 W. 120TH AVENUE
SUITE 300
BROOMFIELD, CO 8002

 

[BestHC]

Sorry if I gave the impression that I am not REALLY PISSED OFF at this situation. I am. I had hired legal representation about 6 months ago, but they wouldn't settle. My attorneys were about to file and were given the heads-up of the bankruptcy, so they didn't think it was worth my money to go through that process if it was true and a few weeks later it turned out to be.

A couple of questions for those more legal minded than I am. If they did something wrong (and they have) and we could prove it, then wouldn't their director's and officer's insurance kick in to pay us off?

If they have 222 million in liabilities and 188 million in assets, then wouldn't that mean they could liquidate and pay us back 85% of our deposits or am I getting that wrong? I assume that our fully refundable deposits have to be included in the 222 million in liabilities, right?

The key is to find a way to start litigating some individuals personally....Your not getiing anything out of UE...Go for it

 

[ClubsRDead]

The key is to find a way to start litigating some individuals personally....Your not getiing anything out of UE...Go for it

An absolute waste of personal dollars at this point. All the officers / directors, if sued personally will apply to the BK Court to have an automatic stay entered, which will more than likely be approved. Basically it will give them protection from having their personal assets attached while the company is in 11, then presumably 7. Sure, you can wait and then go after their personal "stuff" only to find all of it encumbered with lien holders just like our homes are with CS. Plus, FL BK law provides additional protection for homeowners of that asset. So, assume they are all judgement proof. Maybe Healy isn't, maybe not even JT, RK and PC to the full extent, but collection would be about as likely that you'll receive any value for your claim as an unsecured creditor.

Now, the criminal route is always one way to go - and usually works. But, there will be no settlement from most D&O coverage for fraudulent acts. Jail time is a strong possibility though, but that won't pay your lawyer or bring your deposit back.

In most BK cases, the estate itself or litigation trust immediately notices the D&O carrier, and tries to get the full claim amount. Presumably in this case it will be a down the road CH 7 Trustee.

So, sometimes just taking them out in a dark alley and beating the sh*t out of them is about the best satisfaction one might receive...

 

[Desties]

If they have 222 million in liabilities and 188 million in assets, then wouldn't that mean they could liquidate and pay us back 85% of our deposits or am I getting that wrong? I assume that our fully refundable deposits have to be included in the 222 million in liabilities, right?

DCT, I'm fairly sure that the only deposit-related items in liabilities is the RAP -- which is currently nil for T&H, less than two-thirds of original deposits from PE, and whatever fraction that native UR deposits had been amortized down to.

At the end of the day, it's not a SECURED obligation, so we go behind the secured creditors (with CapSource being the biggie).

And, no, I'm no tax pro either, so take that with a grain of salt, but it doesn't look good unless real estate prices skyrocket in the next few weeks to the point where there's anything left over after the secured creditors feed at the trough.

 

[TarheelTraveler]

The key is to find a way to start litigating some individuals personally....Your not getiing anything out of UE...Go for it

As CRD points out, a lot of it depends on if they're judgment proof and if you've got D&O insurance applicable (clearly the budget for the next month includes money for the insurance). Certainly, a good number of Lusso members are after Steve Greer. Maybe a lawyer out there would take it on a contingency fee.

 

[Aladdin69]

My comments assume that our money is gone... I have no doubt of that!
My feelings are simply to examine the actions of those empowered to run the company, and protect our interests, and determine if they may be guilty of any criminal acts, that may have led to our demise? They know how to play the BK game, and apparently have been considering it for some time...even when they were accepting your dues, and selling you stock? If we don't at least do some basic discovery....they will walk away from this SH** in much better shape then any of us:-( Just imagine how good it would feel to see these crooks prosecuted for their crimes!!!
Is 500.00 , per member really too much to pay to see those cards?? Do any of us really think that all the victims here... wouldn't sing like birds to get a chance to put these guys away???
"Don't get MAD...Get EVEN!!!!