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LAS VEGAS-Consolidated Resorts Inc. confirmed Tuesday that it will file for protection from creditors under Ch. 11 of the US Bankruptcy Code. The locally-based subsidiary of ASNY Corp. operated 14 resorts located in Hawaii, Las Vegas and Orlando, FL. The Vegas resorts include Tahiti, Tahiti Village and Club de Soleil.

Blaming tight credit and the recession, the company says it halted sales and marketing efforts Tuesday, shuttering offices and information booths in all three markets. The company says it will continue to operate its resorts during the restructuring.

“As a result of the dramatic changes in the economy and the shrinking timeshare lending environment, Consolidated Resorts Inc…will file for bankruptcy protection,” company spokesman Ken Chupinsky said in a statement. “The scarcity of lenders in the timeshare industry has made it impossible to continue the company.”

Tahiti Village is located on Las Vegas Boulevard at Warm Springs Boulevard. The other two resorts are located on Tropicana Avenue.

In 2007, Goldman Sachs Corp. invested $372 million in ASNY’s timeshare business through Whitehall Street Global Real Estate Limited Partnership 2007. That equity was valued at $0 at the end of 2008, according to published reports.

Whitehall invested $372 million into timeshare company ASNY in June 2007. That equity was valued at $0 at the end of 2008.

Consolidated Resorts is also the defendant in a couple of lawsuits filed in Clark County District Court for not opening marketing booths as promised. Las Vegas Sands Corp. has sued the company for not opening timeshare marketing booths in its new Palazzo resort as agreed and not paying $8.5 million in annual rent. Consolidated alleges the agreement is not enforceable. The case has not yet been resolved.

Locally based Casino Royale alleges in a suit filed this week that Consolidated breached an agreement to pay to operate a timeshare marketing booth at its hotel and gaming facility. The deal allegedly called for Consolidated to guarantee $20,000 in monthly room night revenue and buy 125,000 promotional slot play certificates per hear. Consolidated has not yet responded to the allegations in court. Company officials did not return a Wednesday morning phone call seeking comment.

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