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Ultimate Escapes - Luxury Destination Club Company - Files for Chapter 11 Bankruptcy Protection

Earlier today, Ultimate Escapes, Inc. (OTC Bulletin Board: ULEI and ULEI-W), Ultimate Escapes Holdings, LLC (proposed lead case), and dozens of affiliates voluntarily filed for chapter 11 bankruptcy protection in Delaware.  According to SEC filings, the companies "operate a family of luxury destination club offerings, including Elite Club TM, Signature Club TM and Premiere Club TM, with over 1,200 affluent club members." Those members pay to have access to "over 140 luxury club residences in 45 global destinations available in the mainland United States and Hawaii, Mexico, Central America, the Caribbean and Europe," all of which target properties valued in excess of $1 million. To access the properties, "members join [the club] by paying a one-time, membership fee (similar to a golf club membership) currently ranging from $70,000 to $450,000, depending on the club level and membership usage plan" and then are required to "also pay annual dues currently ranging from $8,000 to $49,000 per year."

As of June 30, 2010, Ultimate Escapes reported assets of $188.7 million against liabilities of $222 million. Revenues for the first six months of 2010 were $14.9 million, down approximately $2.5 million from the same period in 2009. The net loss for the period was $10.8 million, over a 500% increase from the net loss for the first six months of 2009. 

Read more: http://www.netdocketsblog.com/2010/09/ultimate-escapes-luxury-destination.html#ixzz107vU6GE2
 

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