Island One, Inc. to Emerge from Bankruptcy

The Chapter 11 Plan of Reorganization of long-time Baker Hostetler client Island One, Inc., and its affiliated companies was conditionally confirmed yesterday by the U.S. Bankruptcy Court (final confirmation is expected May 4th). Pursuant to the Plan, the equity ownership of Island One will be conveyed to Timeshare Acquisitions, LLC, an affiliate of New York investment fund Yucaipa, LLC. The bankruptcy was extremely complex due to the multitude of resorts, financing facilities, lenders and law firms involved. To ultimately achieve a consensual Plan under those circumstances is a remarkable achievement. Kudos to my bankruptcy partners. After closing of the sale, reconstituted Island One will retain operation of its resorts in Orlando, its resort in Ormond Beach and its resort on South Beach. The indebtedness on those resorts will be amended and restructured. Various other assets, including its resort in St. Croix, land for future development and certain timeshare inventory at other resorts, will be conveyed to a trust for the benefit of one of its creditors, BB&T. Various members of Island One’s current executive management team are expected to remain with the reorganized company. Closing of the transaction is expected to occur in late May.

Tempus Resorts International, Ltd. Bankruptcy Plan Confirmed

The Chapter 11 Plan of Reorganization of long-time Baker client Tempus Resorts International, Ltd., and its affiliated companies was confirmed yesterday by the U.S. Bankruptcy Court. Pursuant to the Plan, the equity ownership of Tempus will be conveyed to a subsidiary of Diamond Resorts International, who will take over operations of Tempus’ primary asset, Mystic Dunes Resort and Golf Club. The Plan contemplates the reorganization of Tempus by a combination of cash payments and refinancing with its principal lender, Resort Finance America, LLC, refinancing or return of collateral to certain other secured creditors and cash payments to unsecured creditors. Certain of Tempus’ former executive management team are contemplated to be engaged by certain Diamond affiliates to perform services after closing. Closing of the transaction is expected to take place in late May or early June.