DC4MS

Ricketts Raises Stakes For Tanner & Haley Assets

By Michael Corkery
From The Wall Street Journal Online

RealEstateJournal | Ricketts Raises Stakes For Tanner & Haley Assets

A company headed by J. Joe Ricketts, chairman of online discount brokerage firm TD Ameritrade Holding Corp., has upped the ante for the real-estate assets of the destination club Tanner & Haley Resorts.

The company, Preeminent Global Experience LP, submitted a cash offer of $108 million for Tanner & Haley's portfolio of high-end properties around the world. That was $10 million more than the $98 million offered for the company's assets last week by Ultimate Resort LLC of Kissimmee, Fla.
Because Tanner & Haley, which has filed for Chapter 11 bankruptcy protection, already accepted Ultimate Resort's bid, it is unclear whether Preeminent's offer will succeed. In a statement, Tanner & Haley said the company had rejected Preeminent's previous bid during the auction and unanimously determined that "the Ultimate Resort bid was the best offer because it represented the best combination of cash and travel value for all Tanner & Haley members."

Joel Lawson III, chairman of the unsecured creditors committee, which represents many Tanner & Haley members, said his panel "will review the situation," although a company spokesman indicated that it is unlikely the offer would be accepted.

Mr. Ricketts, Preeminent's chief executive, wasn't available yesterday for an interview. In a statement, he said: "I am going to compete hard to win this deal and the trust of every member" of Tanner & Haley. Ultimate Resort declined to comment.

Earlier this fall, Preeminent launched what it calls an "ultra-luxury" destination club which it will limit to 100 "invitation only" members. The company, based in Golden, Colo., said it envisions Tanner & Haley as a "mid-range complement" to its ultra-luxury club and that Tanner & Haley's current members will not be required to put down new deposits. While details are still being finalized, annual dues for many Tanner & Haley members would be about $17,000, said Tom Flaherty, Preeminent's lawyer.

Tanner & Haley filed for Chapter 11 bankruptcy protection on July 23, leaving the hefty membership deposits of its 874 well-heeled members in doubt. Tanner & Haley members paid as much as $1.3 million in deposits to stay in the club's homes around the world, but they aren't expected to recoup much of that money. Any deal must be approved by the bankruptcy judge presiding over the case.