Bluegreen Corporation Signs Non-Binding Letter of Intent to Sell Company to Diamond R

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

Sunterra doesn't exist, Sunterra has no debt. All obligations were taken over by private company DRI and you don't know what their financing is, that's the joy of a private company.

That is kind of a fine line in definition.

Sunterra had debt. Sunterra was bought by DRI and so DRI is paying the debt incurred by Sunterra. While you may say that Sunterra has no debt, I would say the Sunterra debt has been transferred to DRI. It is more of an accounting issue, debt is still a debt, even if you put a different name on it.

Again, fine line in how this may be defined, but the debt that was transferred is real. We just don’t know the status of the debt.

And that whole post I just did probably has no meaning at all, but when have I been known to just keep quiet?

[Aashlee Member Find all posts View Profile Close Aashlee]

That's what I thought, Vintner, unless Sunterra defaulted on all its loans and DRI was allowed to buy Sunterra debt-free. But what judge would allow that?

Somehow not knowing DRI's financing doesn't make me feel any better. It's that whole "fear of the unknown" thing. I'd like to know how these people do business.

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

Our imaginations are always better than reality. At this point, we don't know what this means for Bluegreen Owners. So, worrying at this point just gives us ulcers.

In fact, we don't even know if a deal will be consummated. It is a non-binding letter of intent for a price with no terms. And, the seller has the right to find other buyers. Very bizzare situation. Whenever I have been involved in big deals, we always stayed away from letters of intent because it took as long to negotiate those as it did the actual deals. It sounds like a pretty good, "we are for sale" press release.

What is fundamentally different this time from when David Siegel was attempting a hostile takeover of Bluegreen, the Bluegreen board was against it. This time they are supporting it, so it has a much better chance of success.

If another potential suitor comes to the table, this could get really interesting.

[aussiegirl Junior Member Find all posts View Profile Close aussiegirl]

Just when I thought I was done with them.....

So I took advantage of their recent buyback offer and sold my Polo Towers week back to DRI and am waiting for my check.

And I am waiting for the last paperwork from BG to requalify me for gold status (thanks Jim!)

And now I learn that there is a good chance that I will soon be a gold member with DRI

I am getting too old for this......

Ann

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

I realize I'm in the small, small minority, but as a non-BG Points, CMV UDI owner, I'm leery about what this means to the value of my ownerships. I don't think DRI can get rid of my UDI, but who knows what will happen with fees.

Well, ok, I know: they'll go up. But by how much?

sc
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[aussiegirl Junior Member Find all posts View Profile Close aussiegirl]

Our imaginations are always better than reality. At this point, we don't know what this means for Bluegreen Owners. So, worrying at this point just gives us ulcers.

Very true. I just sooooo hope that the things we love about BG will somehow be preserved. And I am very glad that I bought points at the resorts that I use as I think that home resort priority will be the most difficult benefit to mess with.

Ann

[swirg53 Senior Member Find all posts View Profile Close swirg53]

... DRI and you don't know what their financing is, that's the joy of a private company.

It seems to me that all major companies have debt. It's part of doing business. BG "just" announced some new financing partnerships, in fact. I don't remember the fancy lingo associated with that but if you have financing and you use it and you owe the financier, then you are in debt.

Now you can be a loser corporation and be in debt or you can be a winning corporation and be in debt.

Since you mentioned DRI being a private company, does that mean they do not have (public) shareholders like BG does? I'm very not in tune to stock market kind of things. I should be; but I spend too much time in the timeshare market kind of things. Maybe that will be on haitus pretty soon!

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

It seems to me that all major companies have debt. It's part of doing business. BG "just" announced some new financing partnerships, in fact. I don't remember the fancy lingo associated with that but if you have financing and you use it and you owe the financier, then you are in debt.

Now you can be a loser corporation and be in debt or you can be a winning corporation and be in debt.

Since you mentioned DRI being a private company, does that mean they do not have (public) shareholders like BG does? I'm very not in tune to stock market kind of things. I should be; but I spend too much time in the timeshare market kind of things. Maybe that will be on haitus pretty soon!

Debt is not necessarily a bad thing, however excessive debt is a bad thing. Many years ago when a friend was thinking of buying Sunterra, I took a look at their balance sheet which had an excessive amount of debt. I told him not to buy and he didn't. Within a year there was bankruptcy. To build or buy timeshares, a company needs money and usually will borrow to get that money. When the ability to repay becomes questionable- money will not be lent. These are tough credit times and I doubt if DRI has enough cash to buy an outfit like Bluegreen outright and that may just end the story. I doubt if Bluegreen's board will be interested in a cash and stock deal. Maybe Seagull will come back with a juicy offer, or maybe this will just fade away.
Sunterra got into trouble buying up everything it could and growing it's debt--looks like a new name may not change the game. Then again, who knows how deep the private pockets are ? One thing they are doing right is buying back their timeshares on the cheap (a lot cheaper than they could build) and selling them for a huge profit. The owners of DRI may be a small group of investors, while Bluegreen may have multi-thousands of smaller owning investors.

[GeckoSnow Junior Member Find all posts View Profile Close GeckoSnow]

There are some interesting facts in the press release... 1. The statement that the board was presented the offer-lends me to believe that the board has already voted to accept it. 2. BXG is leaving the door open to additional suitors-so it is very likely that BXG will be sold to someone. 3. The Price. I mean really 133% over previous stock close seems kind of insane to me. Also-the price is 'exclusive' of debt-meaning that it could be much higher in the end. This I think it is the only way this doesn't get done depending on what that debt total is.

Some more speculation:

The Exchange company component. How much of DRI's private investors might be made up of II executives or some part of IAC? I wonder when BXG's affiliation agreement with RCI runs out? This would be a huge blow to RCI to lose the BXG owner/member base and a major feather in the cap at II to get them.

And the Select Connections-If the DRI deal does get done, that would make Select Connections Dual Affiliated (assuming that DRI moves BXG to II) which is a very interesting prospect.

Anyway-just some idle thoughts with no basis in reality (like most of my idle thoughts).

[Maggie Member Find all posts View Profile Close Maggie]

I would personally love it if DRI would move BG to II. I am not at all happy with RCI. I have two RCI memberships one through Wyndham and one through BG. I have a week on deposit through both of these but the BG deposit was for a specific oceanfront 2 bedroom unit which was snapped up within 24 hours of being deposited. My exchange draws nothing that I have asked for. My Wyndham deposit was put in actually after the points expired but they managed to extend the 2007 usuage points to a week good until 2009. This exchange draws great weeks. RCI does not treat Bluegreen owners very well.

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

A switch to II would undoubtedly mean dual affiliation as every time I have heard of a change in affiliation it means dual affiliation (at least for current owners at the change).

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

We are talking apples and oranges. Every undrelying Bluegreen resort has either an affiliation with RCI or II or Both. And that affiliation was for the most part negotiated long ago for the older resorts and they remain.
The newer resorts are all afffilated with RCI only.

What the Bluegreen Vacation Club does is provide an RCI membership for all owners. All resorts individually affiliated with RCI can be used for deposits into RCI. Same with II.

It would not be hard for Bluegeen to change the high level affiliation to II. Owners can still deposit with RCI, but they can sign an umbrella agreement for all resorts going forward.

What I want is a WorldMark or DRI like interface into II. It's request first and points just get deducted from your account. The trading power value is high and the resorts that go into II are select by the Resort manager, not the owners. This gets maximum trading power for owners, a great interface for request first and flexchange and the prime weeks are reserved for owners use, not deposits. It's the best possible affilation agreement. I've asked Bluegreen to consider this approach. With DRI, it would be easy to do since they already have such an affiliation.

[GeckoSnow Junior Member Find all posts View Profile Close GeckoSnow]

If your RCI membership fee is bundled into your Bluegreen Club fees, then as the master affiliation agreement goes, so goes your individual affiliation. If you pay the membership fee on your own-then I agree, you can vote for whatever exchange company you want. As I've understood though-its the former and not the later. I seem to remember hearing that the Master affiliation is due for renewal soon; like in the next 1-2 years...

Again, this would be a huge blow to RCI... And as was posted upthread-it is going to be an interesting ride for all of us in the industry to watch play out.

Also begs the question of further consolidation in the industry if this does go thru...

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

If your RCI membership fee is bundled into your Bluegreen Club fees, then as the master affiliation agreement goes, so goes your individual affiliation. If you pay the membership fee on your own-then I agree, you can vote for whatever exchange company you want. As I've understood though-its the former and not the later. I seem to remember hearing that the Master affiliation is due for renewal soon; like in the next 1-2 years...

Again, this would be a huge blow to RCI... And as was posted upthread-it is going to be an interesting ride for all of us in the industry to watch play out.

Also begs the question of further consolidation in the industry if this does go thru...

It wouldn't be a huge blow. It would be like a large company losing a midsized account.

In addition, only a very small percentage of Bluegreen owners exchange through RCI. They reported the number at the last annual meeting. I don't recall the exact number, but I do recall it being extraordinarily low. Something like 2-5% of bookable points actually deposited into RCI.

[swirg53 Senior Member Find all posts View Profile Close swirg53]

September 2007 Owner Meeting/Directors' Meeting

This may clarify (or muddy!!!) some of the questions posed in this thread.....these are excerpts from notes at the September 2007 Annual Owner Meeting and Annual Board of Directors' meeting............be sure to send in your proxy when that time comes up (which should be very soon, I would think) so they can actually do business at the owner meeting....the first note below is about what they have to have for a quorum.

Susan

Bylaws say must have 15% proxies submitted/in attendance for quorum

4359 submitted/7 owners present
No quorum – cannot formally convene

Cannot convene, go ahead and discuss info items

Owner Utilization:
Owner use of points/BT 69%
51% points
11% bonus time
Exchange – 9319 room nights 1%

Sampler – no exchange or BT – one time 9000
69000 room 7.8% of all available room nights – Only can be used at certain resorts and cannot be used in the summer months.

Renters – 60250 room nights – less than 7% (this is not when an owner privately rented to a renter but when BG rented out excess inventory or rented for owners--a program that since has been discontinued)

Employee use – 3 days before check-in, blackout dates/holiday
19500 room 2.2% of all

Maintenance – one week per year – 5%

In excess – 165000 room nights, 18.5% UNUSED

EXTENSION OF RCI AGREEMENT
Scheduled to expire 12/31/07 = 6/30/2009 – extended So there is an RCI agreement that stands for now; I'm guessing if BG didn't extend with RCI, they could change existing RCI resorts over to II or wherever, although Boca is usually right about these things but if he is right, then I don't know why they would even have brought this up at the annual meeting.

Later notes from the Board of Directors' meeting said:
Master affiliation agreement to 09 = RCI affiliation to extend to June 30, 2009 – passed

9000 members use RCI = 7.5%

Marketable vacation time purchase agreement…. Over 2 years - allows BG to purchase banked inventory from RCI – allow BGVC owners to use – Summer mostly – BUY from select resorts, certain times – have done it for last 3 years

60 intervals purchased back – only BG inventory

$400 spent to get it back

Next meeting date: Tuesday Sept 23, 2008 @ 10 am

(Excerpted from files area of the Bluegreen Yahoo Group)