ILX Resorts requests extension of cash collateral use through Oct. 31

By Alice Popovici

New York, Sept. 29 - ILX Resorts Inc. asked for authorization for the continued use of the cash collateral of Textron Financial Corp., M&I Marshall & Ilsley Bank and Irwin Union Bank to fund its operations through Oct. 31, according to a Monday filing with the U.S. Bankruptcy Court for the District of Arizona.

According to the filing, on July 22 the company filed an emergency motion for an order authorizing it to continue to use cash collateral.

Orders were entered on Aug. 4 and Sept. 3, allowing the company to continue using cash collateral through Sept. 30.

During a status conference on the July 22 motion, held Sept. 22, no objections were made to expenses or income projected for October, but Textron attorneys voiced "a concern relating to the alleged accumulation of HOA dues," and the extent to which these dues are, or should be, used prior to Textron's cash collateral.

ILX and Textron have since "reportedly reached an agreement regarding the accumulation and use of HOA dues," and ILX has not received an objection to its recent cash collateral order, according to the motion.

Phoenix-based ILX Resorts acquires, develops and operates timeshare resorts primarily in the western United States. The company filed for bankruptcy on March 2, 2009. Its Chapter 11 case number is 09-03594.

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