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LAS VEGAS- An omnibus hearing related to the liquidation of locally based timeshare company Consolidated Resorts Inc. has been pushed back to the end of the month, allowing the trustee more time to understand all of the assets involved and determine the best way to dispose of the assets. The hearing was previously scheduled to occur this week.

Consolidated Resorts announced in June that it would file for bankruptcy, citing tight credit and the recession. Instead of reorganizing under Ch. 11 the operator of 14 resorts located in Hawaii, Las Vegas and Orlando, FL. opted to shut down operations, layoff 600 employees and liquidate its 14 affiliated entities under Ch. 7. The combined entities list approximately $136.6 million of real and personal property against more than $1.28 billion in secured claims, $9 million in unsecured priority claims and $382 million of unsecured non-priority claims.

In a status report filed one week ago Trustee William A. Leonard states that he is “continuing to come up to speed through a major downloading of data to determine the best course of action” and has not yet determined the value of all of the assets. The possibilities include selling the assets as a whole or in portions, he said, adding that some of the assets may be abandoned if they are over-encumbered or there is no market for them.

Leonard is reportedly working with secured creditors to confirm their loan documentation. Two of the creditors are GMAC and HSBC. Both have filed motions for relief from the automatic stay created by the Ch. 7 filing.

In HSBC’s motion, it claims it loaned Consolidated Resorts Inc. $20.7 million and that the loan is secured by the cash receivables due under customer notes, customer mortgages and customer deeds of trust financed by HSBC valued at between $16.5 million and $18.5 million. HSBC states that the historical default rate on the collateral was less than 1% but since the third quarter of 2008 the default rate has increased by 432% and that the trend continues to worsen.

“The portfolio of customer notes is under stress as more and more consumers default on their timeshare loans due to the current economic environment, leaving a continually shrinking pool of performing customer notes without a replacement source of new notes as the debtors have ceased doing business,” states HSBC in its motion for relief from the automatic stay. “There is no source of replacement capital and HSBC is not adequately protected.”

Consolidated Resorts is a subsidiary of ASNY Corp. 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.

The 14 entities that filed Ch. 7 are: Destinations Unlimited LLC; Consolidated Resorts Inc.; Consolidated Maui Inc.; Consolidated Orlando Inc.; Consolidated Tahiti Inc.; Consolidated Kona Inc.; Consolidated Realty Inc.; Consolidated Media LLC; CRI Travel Holdings LLC; Consolidated Resorts Travel LLC; Lahaina Ticket Company Inc.; Soleil PS LLC; Consolidated Tickets LLC; Soleil LV LLC.

The Vegas resorts involved in the bankruptcy are Tahiti, Tahiti Village and Club de Soleil. Tahiti Village is located on Las Vegas Boulevard at Warm Springs Boulevard. The other two resorts are located on Tropicana Avenue.

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