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2 Comments

  1. 1

    gvargas

    How will this action affect timeshare holders? Should we have legal representation? Will we suffer financial consequences? Please advise.

    g.vargas

  2. 2

    Woody

    If this follows the path of other bankruptcies (and there’s no reason to assume it won’t), then timeshare owners shouldn’t have too much to worry about. The resorts continue to operate while Celebrity works its way through reorganization. Depending on the final outcome, Celebrity will either come out the back end with the same developer in charge or some or all of the “assets” will be sold to some other developer/resort company. Either way, you will still have ownership rights/access to the resorts.

    You may remember that Celebrity itself began its expansion by buying the timeshare assets of Leisure Industries via a bankruptcy proceeding, and there are other examples of this too. Diamond Resorts bought Sunterra’s assets and just recently did the same with ILX Resorts. Consolidated Resorts, on the other hand, recently came out of bankruptcy with the original developer in charge.

    Bottom line: Bankruptcy courts generally place great emphasis on protecting the rights of the owners/members. Keep an eye on what’s happening, but don’t worry too much. At least, not yet.

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