Disney ROFR on Bankrupcy trustee offers

[Daisyduck49]

We are interested in a contract being offered by a trustee in a bankruptcy case - I suspect Disney has a policy on Bankruptcy cases and whether they want to get involved. Anyone have any experience? It has cleared all other parties but no goes to Disney.

 

[Mississippian]

We are interested in a contract being offered by a trustee in a bankruptcy case - I suspect Disney has a policy on Bankruptcy cases and whether they want to get involved. Anyone have any experience? It has cleared all other parties but no goes to Disney.

I would think Disney would act pretty much the same as they would for any other sale. For some resorts they have buyers lined up to buy. They are eager to ROFR. In other cases they just don't want to see the product be given away, but even in those cases they generally feel they can make a profit on their purchase.

 

[trvlqueen]

If Disney exercises the ROFR, I suspect the BK trustee would cancel the contract and relist at a higher price ... they have an obligation to the debtor, court, and debt holders to gain as much as they can on a sale.

 

[Daisyduck49]

That may explain why Disney is "supposedly" reluctant to ROFR trustee sales.

 

[WilsonFlyer]

If Disney exercises the ROFR, I suspect the BK trustee would cancel the contract and relist at a higher price ... they have an obligation to the debtor, court, and debt holders to gain as much as they can on a sale.

Very interesting. I wonder if the trustee could do this, though. I guess it is an interesting scenario and I admit I never thought about it. I always thought that once you declare a price and sent it to ROFR, there was no backing out if Disney wanted it at the listed price. Maybe they have to do differently in bankruptcy cases? I know DVD is not above the law but I doubt the law is above the contract that governs the POS either.

Great question. I'm interested in hearing is anybody knows the answer.

 

[Dean]

If Disney exercises the ROFR, I suspect the BK trustee would cancel the contract and relist at a higher price ... they have an obligation to the debtor, court, and debt holders to gain as much as they can on a sale.

While DVD will often allow people to renegotiate the price and resubmit, they don't have any obligation to do so. Legally it would be a violation to cancel and resubmit. DVD would be within their rights to proceed.

That may explain why Disney is "supposedly" reluctant to ROFR trustee sales.

One of the contracts I own was a bankruptcy and it went through lower than the then floor for ROFR. My understanding is that Disney is only reluctant if they are the lien holder (or the agent) and thus are in a conflict of interest situation. Here is an email from 11 years ago on this very subject from a resale agent regarding what one could buy a specific DVC property for.

... Only if it is in bankruptcy and Disney is the lien holder on the property and it presents a conflict of interest for them to buy it back....which is how you got the other one "under" the buy back rate according to my sources.

 

[Daisyduck49]

Thanks for commenting. Not good news for our situation. There is no lien. We were hoping it would be the other way - when Dsney still owns the note they would take it back. I suspect our only hope is it gets missed.

 

[Dean]

Thanks for commenting. Not good news for our situation. There is no lien. We were hoping it would be the other way - when Dsney still owns the note they would take it back. I suspect our only hope is it gets missed.

The contract is not behind on dues?

 

[Daisyduck49]

Part of the offer is to catch up dues which the trustee will pay. Still getting info on the current status of points. Which resorts and how any are available.

 

[Dean]

Part of the offer is to catch up dues which the trustee will pay. Still getting info on the current status of points. Which resorts and how any are available.

For auctions, the buyer normally pays the additional money due. The reason I asked about dues though is that if it's in arrears and there are legal proceedings on DVC's part, this may work in your favor for the reasons noted above.

 

[Daisyduck49]

Thanks again. We are new to DVC and new to this board but learning quickly.

 

[WilsonFlyer]

Thanks again. We are new to DVC and new to this board but learning quickly.

You'll get great advice from Dean on stuff like this. He knows the system inside and out. There are a few here that do, but he's honestly one of the best.

 

[Dean]

Thanks again. We are new to DVC and new to this board but learning quickly.

You're very welcome. Let us know how it works out.

 

[lilpooh108]

We are interested in a contract being offered by a trustee in a bankruptcy case - I suspect Disney has a policy on Bankruptcy cases and whether they want to get involved. Anyone have any experience? It has cleared all other parties but no goes to Disney.

Did you ever get this? Curious to know what happened. Were you referring to the bankruptcy sale on ebay last week by the BK trustee?

 

[Daisyduck49]

Still early. The contract hasn't been finalized or sent to Disney. We are still in the info gathering stage about how Disney handles trustee cases. We are not involved in the one you mentioned

 

[DisneyFansInLINY]

I am in the middle of purchasing a bankruptcy resale. We passed ROFR on 3/19 and still have not received our closing papers. The broker had told me that I would receive them last week. However, that did not happen. When we spoke on Friday, she informed me that they are still waiting the judge's approval of the sale. And she has no idea how long that will take. So passing ROFR is a breeze compared to the rest of the process lol.

 

[JaimeA]

I am in the middle of purchasing a bankruptcy resale. We passed ROFR on 3/19 and still have not received our closing papers. The broker had told me that I would receive them last week. However, that did not happen. When we spoke on Friday, she informed me that they are still waiting the judge's approval of the sale. And she has no idea how long that will take. So passing ROFR is a breeze compared to the rest of the process lol.

Ouch, a month already. I hope you get them soon. I know nothing about bankruptcy sales but shouldn't the judge have approved when you went to contract ? So you had to wait for Disney to approve and now a judge. Wow. Good luck! Hope you hear soon.

Sent from my iPad using DISBoards