It looks like members of Tanner & Haley (T&H) will end up at Ultimate Resorts after all, following a bankruptcy hearing last week. Under the agreement T&H members will be offered memberships in 2 new clubs.
The membership levels being offered are shown in the table below:
|T&H Club||New Club||New Membership Level||Market Value||Annual Fee|
|Private Retreats||Club 1||Lifetime Bronze Membership||$125,000||$9,500|
|Distinctive Retreats||Club 2||Lifetime Bronze Membership||$200,000||$14,000|
|Legendary Retreats||Club 2||Lifetime Platinum Membership||$350,000||$24,500|
Club 1 plans to have homes with an average value of $2m and Club 2 homes will have an average value of $3.5m.
The acquisition by Ultimate Resorts still needs the approval of 400 of Tanner & Haleys 874 members. As part of the conversion, members will also be offered the opportunity to invest in the equity of the club they join.
All 120 employees at T&H will be offered employment under this deal.
T&H filed for chapter 11 bankruptcy this summer and went through a process that included talking to 27 potential acquirer's, which resulted in six formal offers for the T&H assets and serious discussions with 3 of the potential acquirers. This was the first ever bankruptcy filing in the Destination Club industry.
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