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Tanner & Haley Final Sale |
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Wednesday, 13 December 2006 |
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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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