ILX Resorts Inc., owners of 11 mostly timeshare resorts primarily in the Western U.S., filed for Chapter 11 reorganization protection Monday.
“Dramatic challenges in the economy and recent unanticipated reductions in our credit facilities caused by disruption and instability in the capital markets have necessitated that we seek reorganization protection to preserve resources for an orderly restructuring of the company,” said Joe Martori, chairman and CEO.
The statement released from the company said the protection would enable the company to continue business operations per usual. According to a Bloomberg news story on the company's bankruptcy filing, the Arizona developer has assets of less than $50 million and debt less than $100 million.
The company's website touts the fact 850 employees "believe so much in our product, they own much of ILX through common stock. A company story that ends with the employees owning much of the company—that's the unique truth of the unique vision that is ILX Resorts." Hopefully that belief and vision continue for all employees and the company during the even more challenging times ahead for ILX.
Its American Stock Exchange price was at $0.48 Monday when trading was halted after the filing.