Plan Offers Safety Net to Members, Provides Continued Use of Most of Debtor’s Properties
WATERLOO, Ontario (Oct. 23, 2010) — Demeure, a next generation travel community through which members access the world’s finest vacation homes at discounted rates and without costly membership capital contributions or deposits, has announced it has been selected as the successful bidder for a bulk lot in the bankruptcy estate of Ultimate Escapes, the second largest destination club with more than 1,247 members. Demeure’s plan restarts member access to many of the same residences Ultimate Escape’s members previously had through their prior membership. The transaction remains subject to court approval, and satisfaction of closing conditions.
“Our goal is to move the membership and portfolio to a safe and secure financial footing as soon as possible,” said Peter Schwartz, Chairman and CEO of Demeure. “Our plan addresses concerns that members have shared around stability, flexibility, transparency and fairness in how a club operates and treats its members. We’ll begin contacting Ultimate Escapes members immediately.”
To be considered a qualified bidder, Demeure needed to meet significant financial requirements. The financial review of Demeure included an analysis of the club’s financial model to insure it has sufficient working capital to deliver the experience Ultimate Escapes members have come to expect, as well as to provide all of the unique benefits Demeure has to offer.
Demeure is providing significant working capital to ensure that operations are properly funded and can support the service levels that Ultimate Escapes members have come to expect.
“We believe this is a very good result for all constituencies. We are pleased to provide a home for members of Ultimate Escapes in Demeure that will enable them to begin traveling again very soon,” commented Sheon Karol, Ultimate Escapes’ Chief Restructuring Officer. Mr. Karol is a Partner in CRG Partners, the restructuring firm retained by Ultimate Escapes.
Demeure will work with Ultimate Escapes members over the following two week period to complete the transition process to Demeure under favorable membership terms allowing members to enjoy many of the same properties they once enjoyed while opening travel opportunity to more than 330 carefully selected homes, villas, flats and hotels worldwide in the current Demeure portfolio.
Demeure is a community of discerning travelers that provides access to homes, villas, flats and hotels in sought after locations at significant discounts. Demeure’s management team includes travel, financial and supply chain management experts who have developed a vacation club model that responds to the needs of the market with minimal financial risk. Demeure delivers smart, flexible and cost efficient access to properties all around the world.
ABOUT LAURENCE CAPITAL CORPORATION
Laurence Capital Corporation (LCC) is a Waterloo, Ontario-based private equity firm. LCC manages three investment funds; Laurence Capital Fund I LP, Laurence Capital Fund II LP and Laurence Capital Fund III LP, which hold investments in several growth companies. LCC also manages Laurence Development LP, a diversified real estate development company and Laurence Financial Services Corp that is a joint venture with Maxium Corporation. Laurence Capital IP Fund LP builds infrastructure and provides stewardship and capital to fund development of four significant community initiatives in the travel, music, food and financial services industries. The partners of LCIP Fund LP are in sync with the current revolution of commerce in which consumers organize themselves into communities to share like interests – which fundamentally changes the way buyers and sellers interact – and are adapting and creating new services and efficient commercial models to satisfy the needs of each discreet community culture.
Members of Ultimate Escapes who have questions may continue to submit questions via email to [email protected]