Press Release: Sunterra Corporation
June 21, 2002
ORLANDO, FL -- Sunterra Corporation yesterday announced that the United States Bankruptcy Court for the District
of Maryland (Baltimore Division) had confirmed Sunterra's Chapter 11 Plan of Reorganization. The Plan received
the support of all of Sunterra's major creditor groups. Sunterra expects to conclude its arrangements with Merrill
Lynch Mortgage Capital, Inc. for a $300 million exit financing facility shortly and will then emerge from the Chapter
11 cases. Sunterra and certain of its subsidiaries filed for reorganization under Chapter 11 on May 31, 2000.
"We are extremely pleased with the results of today's confirmation hearing and the Court's action," said
Nick Benson, CEO of Sunterra. "We are gratified by the willingness of our creditors and other parties to address
the issues created by our Chapter 11 filing and to facilitate our return to normal operations with a streamlined
capital structure and a new business plan," Mr. Benson added. "We extend our thanks to our customers,
vendors, employees, professional advisers and others who supported us in this process."
"The Jay Alix & Associates team is also very pleased with the successful conclusion to the Sunterra reorganization
process," said Greg Rayburn, Chief Restructuring Officer for Sunterra.
Sunterra Corporation is one of the world's largest vacation ownership companies, with owner families and resorts
in North America, Europe, the Pacific and the Caribbean.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS. Certain statements in this release constitute forward-looking
statements subject to the "safe harbor" provisions of the Private Securities Litigation Reform Action
of 1995. These forward-looking statements include those regarding the proposed exit financing agreement and Sunterra's
emergence from its Chapter 11 proceedings. Actual results or developments may differ from those provided for in
any of the forward-looking statements.
SOURCE: Sunterra Corporation