Press Release
February 27, 2001
DALLAS, TX -- Silverleaf Resorts, Inc. (NYSE: SVR) yesterday commented on liquidity and going concern issues. In
view of the information contained in this release, management cautions against relying on any information previously
provided with regard to Silverleaf's 2000 results and 2001 outlook.
The Company has been in negotiations for an expansion and extension of its credit facilities with one of its principal
lenders. These negotiations were intended to fund the Company's operations through 2001. However, to date, negotiations
with this lender, as well as other existing lenders and prospective financing sources have not resulted in agreements
necessary to provide financing to sustain normal sales and marketing operations. While the Company is actively
exploring funding alternatives with all its principal lenders and prospective investors, it has determined to substantially
curtail its normal sales and marketing operations effective immediately in order to conserve cash and downsize
its business to a sustainable level.
The Company believes that the ongoing operation of its owned resorts, through Silverleaf Club, on behalf of its
existing vacation interval owners will be largely unaffected. A principal focus of the Company's restructuring
plan will be to ensure that all its existing members have uninterrupted use of the Company's resorts and related
amenities.
The Company has hired the firm of Amroc Securities, LLC as financial advisors to assist with a financial restructuring
and review of other strategic alternatives.
The uncertainties associated with the Company's proposed downsizing and related curtailment of sales and marketing
is expected to delay its earnings release for the fourth quarter of 2000, as well as completion of its audit for
the year ended December 31, 2000.
Based in Dallas, Texas, Silverleaf Resorts, Inc. currently owns and/or operates 22 resorts in various stages of
development. Silverleaf resorts offer a wide array of country club-like amenities, such as golf, swimming, horseback
riding, boating, and many organized activities for children and adults. Silverleaf has a managed ownership base
of over 116,000.
This release contains certain forward-looking statements which involve risks and uncertainties and actual results
may differ materially from those anticipated. The Company is subject to specific risks associated with the timeshare
industry, the regulatory environment, and various economic factors. Additionally, anticipated results are dependent
upon the Company's ability to identify and acquire or develop other operations under terms which are beneficial
to the Company and its shareholders. Other risk factors are more fully discussed under ``Cautionary Statements''
in the Company's SEC reports, including the Company's 1999 annual report on Form 10K (pages 29 through 35).
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Contact:
Silverleaf Resorts, Inc.
Thomas C. Franks,
Executive Vice President
(214) 631-1166
or
Morgen-Walke Associates
Randy Hecht/Michael Polyviou
Press: Steven DiMattia
(212) 850-5600