Press Release: EPIC Resorts, LLC
July 2, 2001
KING OF PRUSSIA, PA -- EPIC Resorts, LLC announced June 28 that it is continuing in active discussions with Credit
Suisse First Boston to provide a timeshare receivables purchase facility to meet its funding needs, and that if
those discussions do not result in agreements necessary to provide financing to sustain normal sales and marketing
operations, EPIC intends to actively explore alternatives.
EPIC also announced that it may not be in compliance with certain covenants relating to the $130 million of 13%
senior secured notes due 2005 issued by EPIC and its co-issuer and subsidiary, EPIC Capital Corp. Specifically,
EPIC did not release the installment interest payment that was due on June 15, 2001, although it had sufficient
funds to do so. A failure to pay interest on the notes when due would be an event of default under the notes if
continued for 30 days. Additionally, the monies to make such payment were not held, as required by the terms of
the notes, in a separate escrow account. While EPIC is working toward stabilizing its funding arrangements in order
to make the payment, there is no assurance that it will be successful. EPIC is a nationwide developer and marketer
of high-quality timeshare resorts located in proven, major tourist destinations. EPIC currently owns eight resorts
and operates five off-site sales centers.
This release contains forward-looking statements. The words ``believe,'' ``expect,'' ``intend,'' ``anticipate,''
and ``project,'' and similar expressions identify forward-looking statements, which speak only as of the date the
statement was made. EPIC undertakes no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise. Forward-looking statements are inherently
subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results
could differ materially from those set forth in, contemplated by, or underlying such forward-looking statements.
The risks and uncertainties to which forward-looking statements are subject, include but are not limited to, regulatory
changes, national or regional economic conditions that can affect the real estate market and other risks detailed
from time to time in EPIC's filings with the Securities and Exchange Commission.
SOURCE: EPIC Resorts, LLC