ILX Resorts files Chapter 11 bankruptcy amid 'dramatic challenges' in economy, loan reductions

By Caroline Salls

Pittsburgh, March 2 - ILX Resorts Inc. made a Chapter 11 bankruptcy filing Monday in the U.S. Bankruptcy Court for the District of Arizona.

"Dramatic challenges in the economy and recent unanticipated reductions in our credit facilities caused by disruption and instability in the capital markets have necessitated that we seek reorganization protection to preserve resources for an orderly restructuring of the company," chairman and chief executive officer Joe Martori said in a company news release.

ILX said it has requested court approval to continue managing its operations as normal.

According to court documents, the company has $10 million to $50 million in assets and $50 million to $100 million in debt.

ILX did not list its largest unsecured creditors. The company did say on its bankruptcy petition that its debt included $1.36 million of accounts payable and $37.93 million of notes payable.

According to an 8-K, filed with the Securities and Exchange Commission, the company's $5 million loan and security agreement with Textron Financial Corp. was terminated on March 1 because the company and the lender were unable to reach an agreement for extending the loan beyond the Feb. 28 maturity date.

Phoenix-based ILX Resorts acquires, develops and operates timeshare resorts primarily in the western United States. Its Chapter 11 case number is 09-03594.

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