ILX Resorts wants to sell assets for $29.67 million or more in auction

By Lisa Kerner

Charlotte, N.C., June 4 - ILX Resorts Inc. asked the court to approve the sale of substantially all of its assets to stalking horse bidder ILX Acquisition, Inc. for $29,672,251 or to the highest bidder, according to a Thursday filling with the U.S. Bankruptcy Court for the District of Arizona.

Textron Financial Corp., ILX's primary secured creditor, supports the transaction.

The company and its debtor subsidiaries own nine resorts located in Arizona, Indiana and Colorado and operate one in San Carlos, Mexico.

Textron, as secured creditor with credit bid rights, will be deemed to be a qualified bidder without the need to comply with any of the other provisions of the bidding procedures, the filing said.

Bidding will begin with the highest qualified bid. Subsequent bids must exceed the prior bid by a minimum of $200,000. Potential bidders must submit a $1 million deposit to be held in escrow.

If the successful bidder is not the proposed buyer and does not have an agreement with Textron, it must pay Textron's allowed secured claim in full in cash, which is $27,681,807 plus interest and fees.

The court will conduct the auction of the assets at the combined hearing to be set on confirmation of the plan and on the sale motion. Bids are due five days prior to the hearing date.

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 in the U.S. Bankruptcy Court for the District of Nevada. Its Chapter 11 case number is 09-03594.

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