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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.

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