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Beware - Consolidated Resorts Filed Bk [MERGED]

macko420

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I have been scouring the internet daily for more information on what's going on at Tahiti Village.

Have you found any info? I understand what lv-maui is saying but so far there has been NOTHING from consolidated. From the phone call I made to them, Phase 2 was nearly sold out and Phase 3 was not yet planned. so potentially there will be an entire phase unsold (maybe 500+ units) OR Phase 3 will not have any effect at all.
Has anyone tried just acting like a prospective customer and
calling and asking for one of the free mini vacations they advertised? I wonder what they would say.
Could current owners actually end up financing the remainder of the project if there is one??
lv-maui - can you ask your contact?

++++++++++++++++++++++++++++++++++++++++++

I just tried calling the number listed to request the free mini vacation and all I get is an "all circuits are busy" message. There is a form to request the vacation online but I didn't want to try that since I am already an owner.
 
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SunSand

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Consolidated filed Chapter 7 today. Seems the management company is still separate from the bankruptcy which is good. But Chapter 7 is pretty much throwing in the towel.

Reported by the Las Vegas Sun Newspaper
 
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cleo_32_2000

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Chapter 7 is basically throwing in the towel as mentioned. We will be definitely asking lots of questions when we are down there next week. In late March they were telling us they were starting to sell Phase 3 and were going to be building a Casino, more pools, etc, etc. I will post my findings.
 

MarkO7111

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Vegas timeshare operator files for bankruptcy

Las Vegas-based timeshare operator Consolidated Resorts Inc. and affiliated companies started filing for bankruptcy protection Tuesday, as expected, in what promises to be a massive case involving hundreds of millions of dollars in debt.

Consolidated runs 14 properties including the Tahiti Village, Tahiti and Club de Soleil timeshares in Las Vegas; as well as timeshare operations in Hawaii and Florida.

It announced June 23 that because of economic conditions it was closing its sales and marketing operations and would seek bankruptcy protection -- but would keep its resorts open for use by timeshare owners.

The bankruptcy filings for Consolidated and 13 affiliated companies were all filed as Chapter 7 liquidations in Nevada bankruptcy court. In Chapter 7 cases, trustees sell assets and use the proceeds to repay debtors.

But Consolidated spokesman Ken Chupinsky said Wednesday that timeshare interval owners will continue to have full use and enjoyment of the resorts.

He said a management company that did not file for bankruptcy protection will continue to run the condominium associations responsible for each resort, which are owned by the timeshare owners.

"This has nothing to do with the timeshare owners. The timeshare owners are in fine shape," he said.

Affiliated companies named in the bankruptcy petitions filed Tuesday and Wednesday were Destinations Unlimited LLC, 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 Co., Soleil PS LLC, Soleil LV LLC and Consolidated Tickets LLC.

The filings totaled thousands of pages. Consolidated Resorts Inc. alone said it had 5,000 to 10,000 creditors -- apparently including many timeshare owners as well as trade creditors and individuals and other parties involved in litigation with Consolidated.

Consolidated Resorts listed assets of $50 million to $100 million and liabilities of $100 million to $500 million.

While the companies didn't spell out any further financial details in their filings, a lack of financing for timeshare buyers and dwindling inventory contributed to the filings, a source involved in the case said.

Besides the curtailment of marketing, the bankruptcies mean further development of Tahiti Village on Las Vegas Boulevard at Interstate 215 will be delayed indefinitely. That property has 860 units and room for expansion.

Tahiti, with 93 units, and Club de Soleil, with 150 units, are both on Tropicana Avenue west of Decatur Boulevard. Neither property has room for expansion.

In 2007, Wall Street investment bank Goldman Sachs Group Inc. said one of its real estate investment funds had made a substantial investment in Consolidated parent ASNY Corp.'s timeshare businesses run by businessman Arthur Spector.

But the economy soured and the Wall Street Journal reported this year that by the end of 2008 the fund, Whitehall Street Global Real Estate Limited Partnership 2007, had written off to nothing its $372 million investment in ASNY.














http://www.lasvegassun.com/news/2009/jul/08/vegas-timeshare-operator-files-bankruptcy/
 

davidvel

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Wow what a shock!! Their radio commercials (Tanya Roberts??) were so great :zzz:
 

dougp26364

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I wonder how this will play out in court with them filing Chapter 7 for liquidation but, trying to keep what might be the most valuable assest in the management contracts at their resorts.
 

lv_maui

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Has anyone tried just acting like a prospective customer and
calling and asking for one of the free mini vacations they advertised? I wonder what they would say.
Could current owners actually end up financing the remainder of the project if there is one??
lv-maui - can you ask your contact?

++++++++++++++++++++++++++++++++++++++++++

I just tried calling the number listed to request the free mini vacation and all I get is an "all circuits are busy" message. There is a form to request the vacation online but I didn't want to try that since I am already an owner.

You will never get thru to a person. They are not going to book any mini vacations. Chapter 7 means that they will sell off every asset

Could owners end up financing the remainder? I do not need to ask them that one. Sure, they could but it will never happen. The assets will be sold to the highest bidder. The owners will never do that.
 

lv_maui

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But Consolidated spokesman Ken Chupinsky said Wednesday that timeshare interval owners will continue to have full use and enjoyment of the resorts.

He said a management company that did not file for bankruptcy protection will continue to run the condominium associations responsible for each resort, which are owned by the timeshare owners.

"This has nothing to do with the timeshare owners. The timeshare owners are in fine shape," he said.
/[/url]


Ok, someone needs to ask Ken this.

Now that Consolidated is BK and not paying its bills, that means that they will not be paying its maintenance fees. BK court will protect you to some degree from past fees but not for future fees, ie post petition. Since you do not have the cash, then these fees will not be paid.

So, is the management company ready to foreclose on all of the intervals owned by Consolidated in default? Are you going to treat Consolidated like all us other owners?

On the budget side, what is going to happen when such a huge chunk of maintenance fees is no longer being paid. I am sure the budget was not ready for this. Can you guarantee no special assessments because of this reason in the next 24 months?

I have the answers but i would love to hear what he would say.
 

AwayWeGo

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[triennial - points]
Who Do You Suppose That Will Be ?

The assets will be sold to the highest bidder.
D. R. I. ?

WestGate ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​
 

lv_maui

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D. R. I. ?

WestGate ?

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

DRI, maybe.

Westgate, no since they are having major problems with banks also.

The assets will be split up also so there will be many buyers
 

dougp26364

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Spinnaker French Quarter Resort Branson
Wyndham had been attempting to expand with a 3rd resort before the economy put an end to that plan. I'd toss them in as a possible as well. Bluegreen maybe or even Festiva could be candidates. However, in this economy, who will have the money to invest? The most lucrative assest is the management contracts. I doubt that DRI will have much interest unless they can take over the managment contracts. Right now, that's where the money is. Credit markets are still tight and the economy still to weak to believe you'd be able to profit much from sales beyond what these companies already have going.
 

danrucker3

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Another TVV owner

Are there any other owners reading this thread besides myself and Curious1?

Macko -- Yepper, I'm another owner at TVV watching this thread with interest! TVV has been good to me; and my family and I are planning a major vacation there in 2010; from the postings it should still be there :clap:


Everyone have a good day
 

littlestar

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I'm watching this thread with great interest as my sister owns at Sands of Kahana on Maui. I really liked her resort when I stayed there.
 

hugh6m

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I received email notice of Consolidated Resorts Bankruptcy

We are owners in Sands of Kahana and received notice of the bankruptcy filing from Consolidated Resorts. In exploring for further information, I found that they have filed under Chapter 7, which means that they will liquidate their assets to pay (partially) their creditors.

CR said that their resort management company is separate and will continue to operate. But the activities desk will be run by someone else--not by people trying to push Consolidated Resorts sales. This doesn't mean that the new activities desk operation won't be pushing some other timeshare sales.

For those of us who are owners in a Consolidated Resorts property, our main concern (assuming their management company is indeed separate) may be with the continuing responsibility for maintenance fees that CR would have in units that they still own. This is probably a greater concern in newer resorts, where CR is likely to be the owner of more inventory.

We did a CR "update" tour at Sands of Kahana when we stayed there in February. They were mostly selling Tahiti Village, but they had a few resales at SoK they could offer to current owners. They wanted $30,000-plus for a 3-BR unit. When we noted that non-developer resale prices were less than half that figure, the salesman (of course) pointed out that one couldn't know if a resale unit had lots of delinquent fees and taxes. When we suggested that resort management could certainly provide information on delinquencies, he said that they didn't do that, because they could easily rent any units with delinquent fees for more than the annual fees. That sounds like the resort management being too much in bed with the developer--many years after SoK was "sold out." And, certainly in the current market, it could be difficult to rent a week for the combined costs of (1) annual maintenance, (2) Maui property taxes (very high), and (3) leasehold buyout fees.

We aren't leaping to dump the 3 weeks we own, but we will certainly want to keep on top of what is going on through the owners' association.
 

macko420

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hugh6m,
When did you get your email notice? We own at TV and haven't heard a word.
 

macko420

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Reply from Consolidated Resorts MANAGEMENT

I had sent an email about something else and included my concern regarding the bankruptcy. Here is the response..............

As for your second concern, Consolidated Resorts Incorporated, the developer of the property, has filed for bankruptcy. What this mean to you as an owner, is that the marketing and sales departments have ceased operations. The economy and the lack of financing for the sales and marketing operations and new projects made it impossible to continue the company.

We, Consolidated Resorts Management, have not filed for bankruptcy. The bankruptcy of the Consolidated Resorts Incorporated doesn't affect the on-going operations of the management of the resorts. This will continue without interruption, as it always has. All of the associations' funds are kept in separate accounts for each association.

Please know that since Consolidated Resorts Incorporated developed/ sold the property, rather than managed owners, they will not be sending any formal letters to owners. Nor will we, as we have not filled for bankruptcy and it is a separate company.

If there are further questions or concerns relating to reservations or the management of your property, please feel free to contact us toll free at 1-800-775-8463.
 

cleo_32_2000

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Just got back from Tahiti Village. It was a great stay esp without the sales people around. The Lazy River was the highlight of the trip. I asked the guy at the desk about the bankruptcy when asked if we wanted to do an "owners update" and he seemed to not want to talk about it. He just said it was business as usual and would not affect owners. I did notice some couples being escorted on tours so there are still some sales going on. I know they weren't current owners because I overhead some of what the salesman was telling them.

I got an upgrade to Bora Bora no problem and was also located where I wanted. Shuttles ran smoothly. Activities scheduled by the resort were somewhat scaled back and lame.

I used the spa this time. Highly recommended. I went to Tahiti Joes to give it one last try and it still sucks. lol...worst waitress ever, barely edible food. Denny's is better.
 

lv_maui

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I did notice some couples being escorted on tours so there are still some sales going on. I know they weren't current owners because I overhead some of what the salesman was telling them.
.


This is shocking to hear that someone was conducting sales. I called my person at Consolidated and the response was, "Whomever they are, they are doing it without our permission, and in fact, they are doing it in violation of Nevada Real Estate law". Whomever in the management company that is allowing this to go on, is in trouble! !

So, I wonder what the real story is with this supposed sales tour.
 

Gerry

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I'm an owner at Sands of Kahana on the resale market and received a formal letter in the mail from SOK stating that the BK does not have an impact of SOK. Just wondering, should I believe it. They claim it is a separate mgmt company, and only the sales and marketing of Consoliated is BK. Well I just we need to wait and see what impacts this will have:cool:
 

Kona Lovers

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Just got emails from Consolidated Resorts Management to owners of Kona Isalnder and Gardens of West Maui that was sent to reassure owners of these resorts that the Management side is solvent and the resorts' finances are secure and everything regarding reservations and ownership will remain unaffected.
They used the analogy of buying a car to illustrate their point. They said the developer is like a car dealer. When you buy a car, if the dealer goes bankrupt, you still own and have use of the car, provided you pay maintenance fees and all.
We own at the Kona Islander, but not at Gardens of West Maui, so don't know why we got both emailings, as they were addressed specifically in the bodies of the letters to the owners of those particular resorts.

Marty
 

giri@fun

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We own a 2 bedroom timeshare at Tahiti Village in Las Vegas. A developer from Florida has called to make an offer to purchase the time share at the same price that we had paid. Is it worth while selling the property or is it better to hold on and see what happens? Could any one know anything?


Giri
 

macko420

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We own a 2 bedroom timeshare at Tahiti Village in Las Vegas. A developer from Florida has called to make an offer to purchase the time share at the same price that we had paid. Is it worth while selling the property or is it better to hold on and see what happens? Could any one know anything?


Giri
Hmm, that is a little hard to believe. i would be suspicious of it. Just today, I got an email from Consolidated. Here it is below............I would not do anything until I checked this developer out first. Above all, do not give him any money to try to sell it for you or anything like that!
Also, I doubt that a 'developer' would be trying to buy individual units. Most likely, a true developer would be looking to actually develop the rest of the resort. Maybe I'm wrong but............

July 24, 2009

Dear Tahiti Village Owner:
There has been much news and commentary regarding the recent bankruptcy filing of Consolidated Resorts, Inc. and its related companies. Some has been correct and much has been wildly inaccurate and potentially dangerous for you.

First and foremost – Neither the Tahiti Village nor Soleil Management is included in the bankruptcy. Your Vacation Club is financially and operationally sound and every timeshare owner will receive the full benefit of usage and exchangeability of their timeshare. The resorts, reservations department and customer service department are fully up and running to serve your vacation needs. As always, timeshare owners are invited to call 800-775-8463 with any questions.

Also – for those of you that have outstanding balances on your purchase contracts, the payment address remains the same and all owner payment processing is continuing without interruption.

Perhaps the best way to understand the situation is to envision that you bought a car and later learned that the car dealer closed its doors. You still own your car and will have full use and enjoyment of it (assuming that you make your payments!). The notion that the dealer discontinued its business has nothing to do with your use of your car.

Unfortunately, some owners have received telephone calls or emails from various individuals attempting to buy the owner’s week with stories of how the projects are going to be closed or that they will lose their rights to the project. This is entirely false. We advise all owners to be very careful when talking to people soliciting the purchase of their week based on the bankruptcy of the developers. These individuals are not associated with the developers, the management companies or the bankruptcy court in any way. They may be using scare tactics to obtain your credit card information.

As always, your management company and customer service departments are here to serve you. Please feel free to call 800-775-8463 if you need us.

Very Truly Yours,

Soleil Management
 

Kona Lovers

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FWIW

I've been to the CRMLV website where I'm supposed to be able to pay mf and make reservation requests. They have tried to reassure current owners of Consolidated managed properties that the bankruptcy has nothing to do with ongoing management operations, yada, yada.
I now get error messages that their security certificate has been revoked. You can get to the home page, but the error message comes when you click owner login or the contact us page.
This may or may not have anything to do with other concerns, but it is quite disturbing to us.

Just called them and they say it's just a problem online, that all is well with everything else. We sure hope so.....

Marty
 

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Any New News?

I have had several confirmations that Consolidated Resorts filed for BK today. Not sure what Chapter. That includes Lahaina Ticket company. Anyone associated with them should beware about tickets, etc.

I am surprised there is not more comments about the Consolidated Development Company's BK.

I think all of us who own Consolidated units have all received the notification from Consolidated Management of the BK and that our units will be managed the same as always without the Developer. We had just taken a "free" trip at the end of May 2009 to Las Vegas to stay in the Tahiti Tower and attended the "presentation". Nothing was even indicated of the future BK. Sales was busy with many "potential buyers". I assume the land purchase for the Sands of Kahana was taken care of by the Management company and therefore will be okay.

One worry I believe is that the Developer did pay fees for the unsold units toward the annual operating budget. I fear this will have a negative impact on the next budget and therefore maintainence fees. :ponder:

Anyone have more direct information from the inside?
 
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