The company files for voluntary Chapter 11 to continue reorganization plan
Orlando, FL (September 13, 2010) — Island One Resorts announced that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code for itself and its affiliate, Island One Resorts Management Corp. (IORMC). The filing was made in the U.S. Bankruptcy Court for the Middle District of Florida.
“Chapter 11 filing for protection allows the company to complete its restructuring plan, initiated in late 2008, to balance the company’s debt and equity components,” said Deborah Linden, CEO. “This filing will facilitate the company’s ability to execute an equity transaction within three months with our equity partner. Restructuring poises the company to move forward with the necessary capital for long-term stability,” she said.
The company will continue normal operations at its corporate headquarters in Orlando, and its nine resort properties throughout Florida and the Caribbean. The resort owner associations, which are not part of the restructuring, will continue to operate in their normal capacity on behalf of all our owners. “We look forward to continuing to provide outstanding hospitality and service to our owners and guests,” said Sulyn Stumbras, president of IORMC and Club Navigo, the company’s points-based vacation club product.
Since the economic downturn and the constraints in the availability of business capital, Island One Resorts has faced significant financial and operational challenges. These changes and modifications in consumer behavior have led to a decline in revenues.
“Island One Resorts will continue to provide remarkable vacation experiences that are driven by our core values of Caring, Passion, Innovation and Integrity,” said Linden. “For nearly three decades, we have provided our owners and guests with outstanding vacation memories, and we intend to maintain and build upon that record. We have an incredible team in place in all facets of our operations, and we will continue to develop vacation products, amenities and services for our resort owners and guests for generations to come.”
These statements are based on Island One Resorts’ current expectations and assumptions, and as such involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those now anticipated.
Island One Resorts has provided extraordinary timeshare vacation experiences through resort development and hospitality management since 1981. The company’s 750 team members are focused upon providing innovative and value-driven benefits to its over 65,000 owners. Its points-based vacation club, Club Navigo, offers 30 resort destinations throughout the United States, the Caribbean, Latin America and Europe. Through Club Navigo, developers have access to award-winning sales, marketing and communications programs; operational support; state-of-the-art reservation and computer systems; and one of the most seasoned management teams ever assembled in the industry. To learn more about Island One Resorts, visit islandone.com or clubnavigo.com
SOURCE: Island One Resorts