The bankrupt luxury travel provider, Ultimate Escapes will sell membership list, intellectual property and 11 of its properties to Demeure, another luxury travel company, for $14.6 million in cash. This sale was approved by a federal judge on Monday. The company had to file for bankruptcy after it defaulted on a $90 million loan. Ever since, it has been trying to sell whatever it can to keep their core business afloat.
Peter Schwartz, Demeure’s chairman and chief executive said, “Our goal is to move the membership and portfolio to a safe and secure financial footing as soon as possible.” Roger Tousignant, a former Morgan Stanley executive, founded the Ultimate Escapes. The company catered to a high end market evident by its lowest membership tier, the Premiere Club’s $70,000 minimum initial payment and $8,000 in annual dues. The company acquired several properties, but after the recession started facing problems. Debts mounted and the credit inflow wasn’t sufficient.
Their bankruptcy file shows $189 million in assets and $222 million in debt. Their largest unsecured creditor is Trump International Hotel and Tower, which also figures as a destination on Ultimate Escape’s Web site. Ultimate Escapes’ 92 properties and 27 leases will also be sold off.