Celebrity Resorts, LLC files for chapter 11 bankruptcy

I think this is just the beginning .... I see the domino effect in the future:

In re Celebrity Resorts, LLC Chapter 11 Bankruptcy Case Summary Contributor: Randall Reese netDockets.com SUMMARY: On Friday, Celebrity Resorts, LLC and 35 affiliates voluntarily filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court in Orlando, Florida. Celebrity Resorts was founded in 2003 and the group of debtors own and operate 13 vacation timeshare resorts in Colorado, Florida, Hawaii, New Jersey, Nevada, and Pennsylvania.

In their bankruptcy pleadings, the companies claim that they have been "one of the fastest growing timeshare companies in the nation" since their founding. The companies blamed their bankruptcies on three primary factors:

1. General economic factors, which resulted in an "unprecedented decrease in revenues" for the timeshare industry beginning in September 2008.

2. Disagreements between members of the Meyers family who control the debtors regarding the companies' business model, which resulted in the termination of two family members - Neil Meyers (the father) and Steve Meyers (a son and the debtors' general counsel) and a lawsuit by Neil Meyers against several of the companies. A second son, Jared Meyers, remains as the chief executive officer of all of the debtors.

3. The declaration of a default on a loan owing to Textron Financial Corporation.

The companies also reported that they have approximately $12 million in unsecured debt and $23 million in secured debt. The companies are represented by Latham, Shuker, Eden & Beaudine, LLP.