Las Vegas News, Sports, Business, Entertainment and Classifieds

Las Vegas Review-Journal - Business

Saturday
Mar 20, 2010
Some Clouds
Some Clouds 62° Weather Forecast

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

Business
Jul. 09, 2009
Copyright © Las Vegas Review-Journal

Consolidated Resorts files for Chapter 7 bankruptcy

By JOHN G. EDWARDS
LAS VEGAS REVIEW-JOURNAL

Consolidated Resorts Inc. and 13 affiliated companies filed for Chapter 7 bankruptcy this week, seeking to liquidate the time-share companies.

Consolidated has between $100 million to $500 million in liabilities and $1 million to $10 million in assets, according to a bankruptcy document signed by Consolidated President Arthur Spector. It's not believed that those numbers can be added to the range of numbers reported for the other companies.

Most Popular Stories
  1. Dispute settled, Strip resort renamed
  2. Trump project will cut smaller checks
  3. Sandra Bullock still poised for successful future
  4. Community banks endure hurt
  5. IN BRIEF
  6. In Brief
  7. Nevada businesses support clean-energy measure
  8. Titus, Berkley say they will vote for House bill; 'public is demanding this,' says Titus
  9. Demi Moore's Twitter account part of suicide help
  10. NV Energy tests smart meters in new valley initiative

  • NV Energy tests smart meters in new valley initiative

    •

    A locally based subsidiary of ASNY Corp., Consolidated operated 14 resorts in Las Vegas, Hawaii and Orlando, Fla. ASNY did not file for bankruptcy.

    The local resorts include Club de Soleil, Tahiti and Tahiti Village.

    Company spokesman Ken Chupinsky said the bankruptcy filings on Tuesday and Wednesday do not affect the time-share resorts and the time-share associations that run the resorts.

    "Their operations are independent and unimpaired (by the bankruptcy filings)," said Chupinsky.

    Asked for further comment, he pointed to a previous statement made for a June 24 Review-Journal story disclosing that Consolidated planned to file for bankruptcy protection.

    In a statement, Chupinsky then said the bankruptcy would result from "dramatic changes in the economy and the shrinking time-share lending environment." He added: "The scarcity of lenders in the time-share industry has made it impossible to continue the company."

    The number of employees has not been disclosed. Consolidated has offices at 801 S. Rampart Blvd., Suite 200.

    When the companies previously disclosed that they planned to file for bankruptcy protection, they said they were planning to file under Chapter 11, which gives them an opportunity to reorganize their debts and emerge from bankruptcy as an ongoing businesses.

    Chapter 7 provides for liquidation of assets so that cash may be distributed among creditors.

    Analysts speaking anonymously said the credit crunch has made it difficult for timeshare companies to obtain third-party financing for timeshare resorts. In addition, analysts said time-share resort developers have been slammed as cash-strapped consumers stop paying on time-share loans and use their money for their home and car payments. However, time share resorts can rent units of delinquent time-share owners to other travelers, creating another source of revenue.

    Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 16 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    Report abuse

    allancbacon wrote on July 21, 2009 05:47 PM: this country is acting like the failing U.S.S.R.from the 1980s.


    Report abuse

    uh oh wrote on July 20, 2009 07:07 PM: What does this mean for time-share owners?


    Report abuse

    RH wrote on July 13, 2009 05:18 PM: How unethical....I went on tour on April 4th and received a voucher for reimbursement of my hotel stay. I just got notice from the bank on 7/9/09 that the check bounced! Now the Customer Service Rep told me today that the company filed bankruptcy. Thank GOD we didnt by a timeshare that they were trying to practically force on us..Poor service... I bet I'll never see that refund..


    Report abuse

    B-S wrote on July 09, 2009 06:11 PM: This has NOTHING to do with the banks or their lending guidelines.

    It's all about the Spector people getting the company and disavowing any of the debts they ran up.

    It's alla charade to make even more money.

    I pray the bankruptcy court will see through this criminal charade. They have destroyed lives and families.


    Report abuse

    ex gambler wrote on July 09, 2009 04:13 PM: I don't put the blame squarely on the banks. I think it is manipulation of corporate books, coupled with dummy corporations and shell companies to hide assets so they can renig on debt. Once they emerge from bankruptcy the boys at the top come out smelling like a rose. Just ask the boys at Station Casinos how that works.


    Report abuse

    Joe Bama wrote on July 09, 2009 11:52 AM: I knew it was over when they quit playing those commercials on the radio 10 times per hour.


    Report abuse

    Ken wrote on July 09, 2009 11:37 AM: So where did all the money go? In the pockets of the execs of this b.s. company. They should be audited by the IRS and forced to give money back. All I think of when I think of Tahiti village is that stupid radio commercial "Can You Say High Roller Baby"! Ha! Ha!


    Report abuse

    James B wrote on July 09, 2009 11:00 AM: "Phil wrote on July 09, 2009 07:00 AM:
    $1 million to $10,000,000 in assets and $100 million - $500,000,000 million in liabilities. This is why the banks are going down the tubes by continually overextending companies that CANNOT pay the money back. Hopefully people are finally learning that timeshares are a ripoff"

    Timeshare a Ripoff?

    How ignorant and I'm giving you the benefit of the doubt.


    Report abuse

    Rob L. wrote on July 09, 2009 09:49 AM: Randy wrote LOUDLY: "THE PREVIOUS PRESIDENT SAID WE HAD TO BAILOUT THE BANKS SO AS CONSUMERS WE COULD GET LOANS TO BUY A HOUSE, A CAR, AND BUSINESSES COULD MAKE PAYROLL."

    So did the current President... Different guy, same smell!!!


    Report abuse

    RANDY wrote on July 09, 2009 09:43 AM: WELL, LET'S SEE WHAT THE BANK BAILOUTS HAVE DONE. THE PREVIOUS PRESIDENT SAID WE HAD TO BAILOUT THE BANKS SO AS CONSUMERS WE COULD GET LOANS TO BUY A HOUSE, A CAR, AND BUSINESSES COULD MAKE PAYROLL. WHAT A LIE. THIS STORY IS PROVES IT. WE WILL SEE MORE OF THIS IN THE FUTURE.


    Read All Comments