Ultimate Escapes' Chapter 11 liquidating plan effective Jan. 3

By Lisa Kerner

Charlotte, N.C., Jan. 4 - Ultimate Escapes Holdings LLC's second amended Chapter 11 liquidating plan became effective Jan. 3, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The court entered an order confirming the plan on Dec. 8.

As previously reported Ultimate Escapes said it based the plan on a settlement with CapitalSource under which the final $300,000 of financing approved as part of Ultimate Escapes' debtor-in-possession facility will be funded on the plan effective date and applied toward payment of administrative claims.

Under the plan, remaining assets will be transferred to a liquidating trust for distribution to creditors.

Treatment of creditors will include:

• The company's pre-bankruptcy secured lender will receive the proceeds from the asset sale, up to the amount of its credit bid;

• The post-bankruptcy secured lender claim will be satisfied under the CapitalSource settlement;

• Tax and other priority claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, receive the property securing their claims or retain their liens;

• Holders of general unsecured claims will receive a share of an unsecured claims distribution; and

• Interest holders will receive no distribution.

Ultimate Escapes, a Kissimmee, Fla.-based destination club operator, filed for bankruptcy on Sept. 20, 2010. Its Chapter 11 case number is 10-12915.

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