Speaking Out Against Sunterra

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

Sounds to me like there is an axe to grind.....

Let him/them grind their axe......I would love for Sunterra to come here and explain themselves....invite them.

I am not that impressed with Sunterra's timeshare program myself and I would not purchase it at this time based on the reputation of the company. If they came clean and cleaned up their act then maybe I would consider resale....certainly not from the developer who pitches heat every time I have gone thru their presentation.....they push most of the typical timeshare lies.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

Let him/them grind their axe......I would love for Sunterra to come here and explain themselves....invite them.

I am not that impressed with Sunterra's timeshare program myself and I would not purchase it at this time based on the reputation of the company. If they came clean and cleaned up their act then maybe I would consider resale....certainly not from the developer who pitches heat every time I have gone thru their presentation.....they push most of the typical timeshare lies.

My experience has been quite the opposite. I went to two presentations. One at EVR Kaanapali and one at Sedona Summit. Both were NOT high pressure at all.

The only thing preventing me from buying is figuring out how to avoid paying the $2995 membership fee. That makes it very unattractive financially to buy.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

My experience has been quite the opposite. I went to two presentations. One at EVR Kaanapali and one at Sedona Summit. Both were NOT high pressure at all.

The only thing preventing me from buying is figuring out how to avoid paying the $2995 membership fee. That makes it very unattractive financially to buy.

Our experience has been similar. Also, Sunterra did not start selling points at their Hawaii properties until the last couple of years.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

I'm not at all impressed with Sunterra as a company. Their management history has not been acceptable and I probably haven't even heard all the stories.

[bigfrank Administrator Find all posts View Profile Close bigfrank]

Guys we have a Chat room that we are paying for monthly. Why not have a Sunterra Chat. I am not sure if we can get Sunterra here as the last time I sorta pushed them out with my own questions. But we can have a Chat between us.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

We could also invite the folks at Timeshare Talk to join us (remembering the time difference-that would have to be rather early).

[opkansas Senior Member Find all posts View Profile Close opkansas]

The same type of scare tactics can be used against any company in America.

I, for one, believe that Club Sunterra is a good program. I am thinking about buying into it. I'm just waiting for the right opportunity.

Sunterra has become a winner ONLY because of their Points Affiliation with II.
I have found MANY more listings with II than I have ever found with RCI.

[Bill4728 Super Moderator Find all posts View Profile Close Bill4728]

As most of you know, Spence has been a big booster for Sunterra for awhile. He has me convinced that Sunterra may be worth looking into. As soon as some of this uncertainty about "will Sunterra be forced to sell ?" dies down.

[Keitht Super Moderator Find all posts View Profile Close Keitht]

I don't know how much the problems of Sunterra in Europe with affect the parent company, but I would certainly recommend reading the history on www.timesharetalk.co.uk before doing anything. There is a complete section devoted to Sunterra Europe and their allegedly dubious management techniques.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Guys we have a Chat room that we are paying for monthly. Why not have a Sunterra Chat. I am not sure if we can get Sunterra here as the last time I sorta pushed them out with my own questions. But we can have a Chat between us.

We might get them if we tell them if they turn us down, we will invite Podesta next!

[Spence Super Moderator Find all posts View Profile Close Spence]

I'd like to chat with Podesta
That's some thread resurrection, March?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Why don't we invite him? He participates in TimeshareTalk from time to time.

To get the Brits onboard for a chat, a Sunday afternoon might be a good bet.

[Spence Super Moderator Find all posts View Profile Close Spence]

Sunterra Corporation to Sell Sunterra Europe

Sunterra Corporation Engages Chanin Capital Partners to Sell Sunterra Europe; Forms Strategic Alternatives Committee; Restructures Interim Management's Compensation to Align With Shareholder Interests; Hires Veteran Accounting and Restructuring Specialist LAS VEGAS, NV,

Sep 14, 2006 (MARKET WIRE via COMTEX News Network) -- The Board of Directors of Sunterra Corporation (PINKSHEETS: SNRR) today announced that the company has put its European operations up for sale. The Board made its final decision to sell the business based on its and management's determination that the European operations were not strategic, and Chanin Capital Partners' conclusion that the best strategic alternative was a sale. As a result, the company has engaged Chanin to begin the European sale process immediately. To facilitate this process and the overall strategic alternatives review and implementation, the Board formed a Strategic Alternatives Committee and appointed John Ziegelman as its Chairman. The company also announced that it has restructured interim management's compensation and named Steven Varner, a Managing Director at Alvarez & Marsal LLC, as interim Chief Operating Officer, replacing Keith Maib.

European Operations to be Sold as Going Concern

Earlier this year, Sunterra retained Chanin to assess, value and assist the Board of Directors in considering strategic alternatives with respect to the European operations. During this same time period, the European business has been streamlined and restructured. Unprofitable marketing and sales channels have been eliminated and ongoing general and administrative expenses have been greatly reduced.

As a result of the above and in connection with Chanin's recommendation to sell the business, the Board has officially put the subsidiary up for sale. The streamlined Sunterra Europe -- its member base, inventory, management contracts, property, plant and equipment, and re-focused sales and marketing organization -- will be marketed by Chanin beginning immediately. During the course of its advisory work, Chanin was approached by several potential strategic acquirers expressing their interest to pursue a transaction for Sunterra Europe. Chanin has commenced the formal sale process for Sunterra Europe, including further discussions with these potential acquirers, and will solicit additional interest.

Strategic Alternatives Committee Formed

To expedite the review and analysis of the company's strategic alternatives for maximizing shareholder value and the sale of Europe, the Board has formed a three-member Strategic Alternatives Committee. In addition to Mr. Ziegelman, James A. Weissenborn, interim President and Chief Executive Officer, and James H. Dickerson, Jr., Chairman of the Audit Committee, will make up the balance of the Committee. The Committee's mandate is to work with the company's advisors and make recommendations to the Board on all matters pertaining to the sale process for Sunterra Europe and to work with Merrill Lynch & Co. as it formulates the company's strategic alternatives for its non-European operations.

Interim Management

The Board has made changes to the company's interim management team, and the Compensation Committee has reduced the overall compensation packages for Mr. Weissenborn and Keith Maib, while further aligning management and shareholder interests. Mr. Weissenborn will continue to serve as interim President and Chief Executive Officer. The Board noted it had interviewed several other potential interim Chief Executive Officers, but concluded that Mr. Weissenborn's management consulting experience, combined with his substantial knowledge of Sunterra's operations and understanding of the timeshare business, makes him uniquely qualified to lead the company through this transitional period. However, the Board decided, and Mackinac Partners, LLC, agreed to substantially reduce the overall compensation package in respect of Mr. Weissenborn's services. Mackinac's incentive fee is tied to Sunterra's stock price and will be zero unless and until the price is at least $15 per share.

The Board is also pleased to announce the appointment of Steven Varner as interim Chief Operating Officer. Mr. Varner is a managing director of Alvarez & Marsal, the independent global professional services firm specializing in business performance improvement that Sunterra engaged to assist in the implementation of its strategic alternatives plan and various business initiatives that are intended to maximize the performance of the North American operations. Mr. Varner has over 16 years of experience advising boards of directors and investors, and has a significant record of assisting in successful financial and operational improvement programs, including substantial experience in the consumer-branded products and services industries. Prior to joining Alvarez & Marsal, Mr. Varner was a non-CPA partner with Deloitte & Touche LLP and Arthur Andersen LLP. He has significant experience with public accounting firms and companies that require re-auditing or restatements, which will be necessary to re-establish Sunterra as a reporting company. Like the new arrangement with Mackinac, Alvarez & Marsal's incentive compensation is tied to clearly defined metrics reflecting Sunterra's stock price at not less than $15 per share.

Keith Maib, Sunterra's former Executive Vice President and Chief Operating Officer, will remain with the company on a transitional basis. He will assume some of the responsibilities of former Chief Marketing Officer David Lucas, as well as other projects on an as-needed basis. Mr. Maib's total compensation package has also been reduced substantially.

The company will be filing a Form 8-K with the Securities and Exchange Commission relating to the management compensation agreements.

Additionally, Sunterra recently began a recruiting process designed to attract qualified timeshare and leisure professionals to join its senior management team on a permanent basis, including filling the chief executive officer and chief marketing officer positions.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Sunterra has become a winner ONLY because of their Points Affiliation with II.
I have found MANY more listings with II than I have ever found with RCI.

My Sunterra time trades great in RCI as weeks or points, very well with SFX, terrible in II as weeks and great again as part of the preference given to big groups like Sunterra in II. Thats the only way II is worth using - and with that preference it does work great. We have 2 Marriotts booked right now - both holiday periods - with only 1.5 weeks worth of Sun Options. Now thats good! (But not so good for the Marriott owners who most likely paid 2+ times the purchase price and annual fees that my Sunterra resorts cost). If you can't be part of one of the favored groups in II your trade value is not good from my experience.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Here is Podesta's latest missile on the Sunterra sale of its Europe operations:

www.streettalkblog.com/?p=926

I wonder if Club La Costa is still positioned as the buyer?

Podesta has also written the SEC:

www.streettalkblog.com/?p=938