Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-Expecting to formally emerge from Chapter 11 protection in the next 30 days, locally based Sunterra Corp. is scrapping its existing contract with Scottsdale, AZ-based Resort Condominiums International and going instead with Miami-based Interval International to provide exchange services for Sunterra owners.

The values of the new and old contracts weren’t disclosed. The U.S. Bankruptcy Court in Baltimore, which approved Sunterra’s reorganization plan last week, also approved the Orlando company’s switch in exchange service providers.

The new contract also replaces the existing deal Sunterra had with Interval for Sunterra Europe’s Grand Vacation Club members.

In a separate development related to Sunterra’s May 31, 2000 Chapter 11 filing for protection under the U.S. Bankruptcy Code, the company is suing Arther Andersen for $150 million in U.S. District Court here. The suit alleges the accounting and consulting firm should have detected Sunterra’s weakening financial condition in 1998 and 1999 and notified the company instead of providing “a false impression of financial well-being.”

When Sunterra filed for Chapter 11, the company listed liabilities of $850 million and assets of $1 billion in 89 global resorts. Cypress Pointe Resort in Orlando is one of Sunterra’s more successful properties.

The company is closing a $300 million exit financing deal with Merrill Lynch Mortgage Capital Inc. and plans to relocate its corporate headquarters to Las Vegas by year end, as previously announced.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.