ILX Premiere Vacation Club files for bankruptcy

[katiemack]

Originally Posted by mshatty

A national wide search under the PACER court system shows the following cases/adversary proceedings involving ILX. Most look like they are individual lawsuits that are filed within a bankruptcy case.

Bankruptcy Name Search Results
12 Total Party matches for selection ILX for ALL COURTS
Search Complete
Mon Nov 17 09:13:19 2008
Selections 1 through 12 (Page 1)

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Name Court Case No. Filed Chapter
1 ILX CORPORATION mowbke 98-60767 04/30/1998 13
KENNETH MERLE CATES AND KAREN LYNN CATES

2 ILX RESORTS INC. azbke 99-00692 09/22/1999 AP
ROUNDHOUSE RESORT VACATION PLAN OWNER'S ASSOC AND ILX RESORTS INC.

3 ILX RESORTS INCORPORATED azbke 01-00392 05/14/2001 AP
ILX RESORTS INCORPORATED AND ROSTAN

4 ILX RESORTS INCORPORATED azbke 99-00687 09/21/1999 AP
ILX RESORTS INCORPORATED AND ROUNDHOUSE RESORT VACATION PLAN OWNERS ASSOCIATION

5 ILX RESORTS INCORPORATED azbke 03-05488 04/03/2003 13
DEAN D PHELAN AND CONNIE PHELAN

6 ILX SYSTEMS INC. nysbke 02-40187 01/28/2002 11
GLOBAL CROSSING NORTH AMERICA, INC. AND GLOBAL CROSSING LTD.

7 ILX SYSTEMS, INC. mdbke 99-05570 07/16/1999 AP
SIMPSON AND ILX SYSTEMS, INC.

8 ILX SYSTEMS, INC. txnbke 94-30252 01/10/1994 7
TEXAS SECURITIES, INC.

9 ILX SYSTEMS, INC., AN AFFILIATE OF THE THOMSON CORPORATION debke 02-11404 05/15/2002 30
TELEGLOBE HOLDINGS (U.S.) CORPORATION

10 ILX SYSTEMS, INC., AN AFFILIATE OF THE THOMSON CORPORATION debke 02-11415 05/15/2002 30
PETITION OF ERNST & YOUNG INC., AS MONITOR OF TELE

11 ILX SYSTEMS, INC., AN AFFILIATE OF THE THOMSON CORPORATION nysbke 02-22736 05/20/2002 11
METROMEDIA FIBER NETWORK, INC., ET. AL.

12 ILX, INC. innbke 02-33303 06/06/2002 13
DANNY TONY WILLIAMS AND DIANA LENORA WILLIAMS

I am not 100% sure, but I don't think ILX Systems has any relation to ILX Resorts. I know that there have been some class actions filed against the resorts for overselling the space.

[Spence]

Originally Posted by Spence

Anyone heard anything about this, all II exchanges to ILX Premiere Vacation Club space canceled?

Yeah, well, I certainly didn't make it up. I can't remember from last August where the news item originated. Thanks for the info below.

Originally Posted by rikkis_playpen

There have been reports for the last few months that an arm of ILX has declared bankruptcy. An Interval International rep did confirm in August that a number of ILX reservations had been canceled by the individual resorts themselves, and Interval had to notify members that were effected by the exchange cancellations. When I called ILX for details, I was promptly placed into the voicemail of the Club CFO and told that any info would have to come directly from her.. After a few tries without a return call- I took the hint!

ILX sells via many different venues, and as numerous corporate entities. So far, only the non-deeded Premiere Vacation Club members have been reported to be effected. If this info is correct- the deeded owners should not be effected directly- but the club owners will be in limbo and any pending club reservations will most likely not be honored by the individual resorts. If you have a sale or rental in place for any ILX property- you will want to ensure you check on the status routinely over the next few months.

The real test will come when the individual resorts try to compensate for the huge loss in income from the defaulting Club memberships and fees.

ILX properties include the following:
Los Abrigados
Bell Rock
The Carriage House
Crags Lodge
Kohl's Ranch
Rancho Manana
Roundhouse Resort
Sea of Cortez Resort
Varsity Clubs of America - South Bend & Tucson

[Premiere Vacation Club]

Neither ILX Resorts or Premiere Vacation Club ("PVC") has declared bankruptcy. The bullet points below explain the situation at Rancho Manana Resort.

PVC owns units (and an undivided interest in the common areas) at Rancho Manana Resort. It pays dues to the Rancho Manana homeowners association (“HOA”), as does the developer, Rancho Manana Ventures, for its units, and as do the Private Residence Club (“PRC”) members for their units.

• The developer, Rancho Manana Ventures (“Developer”), is not affiliated with PVC or ILX Resorts in any way.

• The Developer controls the Board of the HOA and also manages the resort.

• The Developer is in default on its borrowings from the bank, which are secured by the Developer’s units and adjacent undeveloped land, and the Developer is also delinquent in its payments to the HOA. The bank sought to foreclose on the Developer’s units and the undeveloped land.

• PVC’s units have been released from the bank’s loan (as have the PRC units) and are not a part of the foreclosure proceedings.

• The Developer sought to forestall the foreclosure proceedings by filing Chapter 11 bankruptcy for Rancho Manana Ventures (the Developer). In this filing, it disclosed that it owed substantial sums to the HOA. Under bankruptcy rules, the HOA will not be able to collect any amounts it was owed from the Developer at the time of the filing until the bankruptcy court approves a plan of distribution, which may take some time.

• The HOA is not in bankruptcy, however, without the funds the Developer owes the HOA, the HOA will be unable to operate the resort at appropriate guest service levels, if at all.

• The Developer advised us that, given its inability to pay its obligations to the HOA, it could not continue to keep the resort open.

• Upon this news, and with no certain date of relief from this situation, ILX and PVC began making alternative arrangements for PVC Owners scheduled to stay at Rancho Manana in the upcoming weeks, either at other resorts in the area or other PVC locations.

• ILX also advised Interval International (“II”) of the situation and II began to relocate its inbound exchange guests to other II affiliate resorts with the intent of creating the least disruption to its members as possible.

• This is a temporary situation of, at present, unknown duration. It does not affect PVC’s ownership of its units nor does it affect PVC Owners’ ability to use time at Rancho Manana once this situation is addressed, which will be likely to occur through the sale or other transfer of ownership of the Developer’s interest in the property to a new owner. Again, PVC’s ownership interests will not be affected by any such transaction.

• At such time as we are assured that PVC guests will have a guest experience at Rancho Manana that meets PVC standards and without risk of interruption, we will resume scheduling Owners to stay. In the interim, we have ceased making room reservations for Rancho Manana. For prudence, we have also removed Rancho Manana from the wall tours at resorts with on-site (or nearby) sales offices to avoid any expectation of near term use by tour guests.

[Spence]

Originally Posted by Premiere Vacation Club

Neither ILX Resorts or Premiere Vacation Club ("PVC") have declared bankruptcy.

Welcome.

[lawren2]

Premiere Vacation Club

I also extend a warm welcome to you here from TS4Ms



We appreciate the very fast and knowledgeable response to this post.

We hope you will continue to monitor our board and contribute as you can. Perhaps we can change your "status" from guest to representative?

We have several independents represented here and many have found it to be to their benefit.

[rikkis_playpen]

Originally Posted by Premiere Vacation Club

Neither ILX Resorts or Premiere Vacation Club ("PVC") has declared bankruptcy. The bullet points below explain the situation at Rancho Manana Resort.

Welcome and thank you for the info!

I look forward to any future contributions you can make! This is a great community of timeshare fans- and I hope you'll stay involved in these discussions!

[katiemack]

A Link that might seem relevant:

ILX Loses over $7 million

[rikkis_playpen]

Looks like the next domino in the ILX chain has fallen!


Resort operator ILX Inc. files for bankruptcy

by Dawn Gilbertson - Mar. 3, 2009 12:00 AM
The Arizona Republic

Timeshare resort operator ILX Inc., stung by plunging timeshare sales and a surge in buyers' loan delinquencies, filed for Chapter 11 bankruptcy reorganization Monday.

The small Phoenix-based company, best known for its Los Abrigados Resort in Sedona, also blamed a recent "unanticipated reduction" in its financing due to instability in the financial markets.

The company's stock will continue to trade on the American Stock Exchange. But it could end up worthless, as stockholders last in line for repayment in bankruptcy reorganizations. Shares fell 9.4 percent Monday to 48 cents. ILX stock had been as high as $6 a share in the past year.

ILX, which operates eight timeshare resorts in Arizona, one each in Colorado and Indiana and one in San Carlos, Mexico, said it expects the Chapter 11 filing to enable the company and its resorts to continue business as usual.

Timeshare operators, like hotels, airlines and other travel businesses, are hurting because consumers have less disposable income in this weak economy. That means less money to spend on a timeshare or, in the case of those who already own a week or two at a timeshare resort, to pay off their loan.

ILX has not filed its financial results for the fourth quarter ended Dec. 31. In the nine months through Sept. 30, it reported a net loss of $8.1 million, compared with a loss of $801,194 a year earlier. Revenue plunged in the same period to $17.8 million, one-half the level of a year earlier. The biggest culprit: ILX's estimated uncollectible revenue, which is deducted from total revenue, ballooned to $15.2 million from $839,097 in the first nine months of 2007 as it reviewed past-due accounts and the likelihood of collecting from customers who were current on their loans or had just purchased a timeshare.

Timeshare sales fell 19 percent in the nine-month period, to $14.9 million from $18.4 million. The average sales price fell 3.5 percent to $17,157.

[kapish]

More news on Yahoo Finance:
ILX RESORTS INC Share Price Chart | ILX - Yahoo! Finance UK
ILX Resorts Files for Chapter 11 Reorganization: Financial News - Yahoo! Finance

“Dramatic challenges in the economy and recent unanticipated reductions in our credit facilities caused by disruption and instability in the capital markets have necessitated that we seek reorganization protection to preserve resources for an orderly restructuring of the Company,” said Joe Martori, Chairman and CEO.

The Company expects that Chapter 11 protection will enable the company to conduct its business operations as usual. To that end, the Company is seeking approval from the court in order to continue managing its operations in the ordinary course.

[BklynNative]

ILX files Chapter 11


on 02-03-2009 13:22
Sedona Red Rock News, Sedona, AZ Classifieds, Jobs, News, Sports, Weather - ILX files Chapter 11


By Greg Ruland

One of Sedona's largest private employers filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code today, March 2, ILX Resorts Chief Financial Officer Margaret Eardley announced.

The filing came after ILX, a publicly traded company, was unable to negotiate an extension for payments on a $5 million promissory note owed to Textron Financial Corporation, according to documents filed with the Securities Exchange Commission.

About $4.57 million in principal is still outstanding, ILX reported.

The loan was due to be paid off Dec. 31, 2008, but ILX negotiated two extensions on the payment, the last of which expired Sunday, Feb. 28.

ILX and Textron "have been unable to reach a mutally acceptable longer term extension of the loan," ILX reported.

The loan is secured by an assignment of a promissory note owed to ILX and a "Deed of Trust from an affiliated limited liability company securing approximately 14 acres of land in Sedona."

The company and several of its subsidiaries filed under Chapter 11 in the U.S. Bankruptcy Court in Phoenix.

""Dramatic challenges in the economy and recent unanticipated reductions in our credit facilities caused by disruption and instability in the capital markets have necessitated that we seek reorganization protection to preserve resources for an orderly restructuring of the Company,” Joe Martori, ILX Chairman and CEO, stated in a press release.


ILX expects Chapter 11 protection will "enable the company to conduct its business operations as usual. To that end, the Company is seeking approval from the court in order to continue managing its operations in the ordinary course," Eardley stated.

"I can't comment any further," she said.

Susan Johnson contributed to this report.