breaking news

Diamond Resorts Bought by Apollo Global Management

News came in to Inside Timeshare yesterday afternoon 29 June 2016 that a Private Equity Firm, Apollo Global Management had bought Diamond Resorts International.

 

The deal is reported to be worth $2.2 Billion, the stock for Diamond had risen from $25 to $29 a share within hours of the announcement. One analyst in the States, Chris Demuth has already suggested that the Wyndham Group may even purchase the company. He believes that Wyndham may even pay around $36 to $39 a share.

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Apollo Global Management was founded in 1990 by Leon Black, he was a former banker with Drexel Burnham Lambert. Drexel had closed earlier that year after a securities scandal which resulted in the bank having to pay $650 million in fines. Being unable to repay a $100 million debt it collapsed.

 

According to the online financial journal The Street, Bloomberg had called Drexel Burnham Lambert “Renegades of Junk”, due to its involvement in the junk bond market. Irene Parker a writer for The Street and a Diamond timeshare owner herself, believes that this title is more fitting for Apollo Global Management after its acquisition of Diamond Resorts. (follow link below).

 

http://www.thestreet.com/story/13624491/1/is-apollo-returning-to-its-junk-roots-with-its-acquisition-of-diamond-resorts.html

 

In her article for The Street, she explains her anger at the way Diamond has treated owners of its timeshares. She is in the process of writing a series of articles highlighting this, Inside Timeshare will be keeping you informed as they appear.

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On the subject of the share prices, Inside Timeshare published an article in April, based on a report by Gretchen Morgansen of The New York Times. It highlighted the plunge in share prices following a series of reports about Diamonds treatment of owners, especially the elderly. It followed the story of a 77 year old lady called Mary Ann Gutierrez, she was subjected to an intense presentation by Diamond reps and basically held captive for around 5 hours, It was an attempt to upgrade her for a steep upfront fee, even though she had firmly told them no she was not interested.

 

The article also highlighted how Diamond hike up the maintenance fees after it buys a bankrupt resort. European owners are well aware of this themselves, after all they did see huge rises when Diamond took over from Sunterra around ten years ago. We are also well aware of how they make it virtually impossible to get out of the contracts. For those who purchased in Spain there is at least hope that these contracts can be declared “Null & Void”, also resulting in all the original payments being given back. All this has been made possible due to the strengthening of the laws in Spain, and the rulings of the Supreme Court, these can be found on the Canarian Legal Alliance website. (see following links).

 

http://insidetimeshare.com/diamond-resorts-international-share-price-falling/

 

http://www.canarianlegalalliance.com/diamond-resorts-court-case-victory-2/

 

If you have any questions as to how this may affect you, contact Inside Timeshare and we will try to find the answers for you. If you would like to know where you stand as far as making a claim or how to get out of your contract Inside Timeshare will be happy to give you the best advice and information possible.

 


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