• 17
  • September

Time-shares have historically been quite popular methods for Americans with extra means to buy into a slice of the good life. Completely affordable when compared to the full purchase of a vacation property, time-shares were the way to go a few years back before the economy took a nose dive. People aren't buying into time-shares like they used to, and now Orlando-based company Island One Inc., has determined they need help. The Florida time-share company announced late last week that it is pursing Chapter 11 bankruptcy protection.

Island One manages more than 11,000 units across five local resorts, and claims to currently owe $150 million in secured debt and another $2 million unsecured. The largest portion of the debt, roughly $100 million, is owed to Textron Financial Corp. The company also holds property interests in Naples, Miami, Ormond Beach and St. Croix in the U.S. Virgin Islands.

Island One's goal in reorganization is to afford themselves the opportunity to solicit and receive capital infusions from new third-party investors. It is reported the company already has an investor lined up, and hopes to finalize Chapter 11 in Orlando's U.S. Bankruptcy Court by the end of 2010.

The good news for Island One's time-share owners is that they shouldn't experience any change in day-to-day operation or property maintenance carried out by the company's employee base of 700, most of whom are located in Orlando. The time-share company has taken conservative measures in recent years, scaling back employee headcount by roughly 300 people since 2007.

Source: Orlando Sentinel "Orlando-based time-share company Island One seeks Chapter 11" 9/13/10