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8-K - Secure America Acquisition CORP | v197089_8k.htm |
ULTIMATE
ESCAPES FILES FOR BANKRUPTCY PROTECTION
ORLANDO –
(September 20, 2010) – Ultimate Escapes, Inc. (OTCBB: ULEI and
ULEI-W), today announced that it had filed for protection under
Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for
the District of Delaware for itself and certain of its
subsidiaries.
The Board
of Directors of UEI authorized the filing of a Chapter 11 petition following the
recommendation of a Special Committee of UEI’s independent directors in order to
protect UEI’s assets with a goal to maximize the value for all of its
constituencies, including its creditors, its members and potentially its
shareholders. The Company has requested that the Court approve the
appointment of CRG Partners, LLC to provide the services of a Chief
Restructuring Officer and supporting personnel, and UEI has also filed a variety
of first day motions that will allow it to manage its critical operations with
the goal of continuing to provide a reasonable level of services to its members
for the short period of the expected proceeding.
UEI, in
conjunction with its largest secured lender under an agented credit facility, is
exploring the sale of its operations to another destination club, hospitality
company, or investment group as well as other strategic alternatives. Efforts to
explore such options had begun several weeks ago. Among the options which have
been explored is the possibility of a stand-alone plan whereby members could
acquire equity in the club.
In order
to facilitate the sale of UEI’s assets and operations, UEI’s largest secured
lender has agreed to provide a credit bid for substantially all of the assets of
the Debtors. Pursuant to a proposed bidding process filed with the
Bankruptcy Court, such secured lender’s bid would be subject to higher and
better bids through an auction process. It is anticipated that
qualified interested parties may submit bids for all or parts of the Debtors’
assets and operations, including bids on individual owned
properties. If no higher and better bid is obtained within the
process approved by the Bankruptcy Court, then such secured lender or its
assignee will purchase substantially all or certain of the Debtors’ assets to be
determined at a final closing.
No
assurance can be given that any acceptable alternative will be found as an
alternative to the sale to such secured lender. Accordingly no
assurance can be given that the business of the Company will be sold as a going
concern or that any such plan will result in any recovery to the shareholders or
unsecured creditors of UEI.
For more
information on Ultimate Escapes, visit www.ultimateescapes.com
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