Ultimate Escapes' creditors committee objects to sale bid procedures

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Ultimate Escapes Holdings, LLC's recently appointed official committee of unsecured creditors filed an objection to the company's motion seeking approval of bid procedures for the sale of its assets to stalking horse bidder CapitalSource Finance LLC for $74.7 million or to the highest bidder, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Ultimate Escapes has set the bid deadline for Oct. 15 at noon ET. An auction, if necessary, would be held on Oct. 18 and a sale hearing would be held on or before Oct. 20.

The committee wants to push the proposed deadlines by 30 days.

In the filing, the committee said that the bid procedures motion requires that the sale occur "on an extremely expedited basis solely for the benefit of the secured lenders in an attempt to chill all competing bids" and intentionally excludes the committee from participating in the sale.

Ultimate Escapes, a Kissimmee, Fla.-based destination club operator, filed for bankruptcy on Sept. 20. The Chapter 11 case number is 10-12915.

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