Photo Courtesy of Diamond Resorts InternationalDiamond Resorts International has acquired the privately owned luxury vacation operator Pacific Mountain Resorts (PMR). The amount of the total transaction is more than $350 million, as it includes a loan, the acquisition of nine hotels and resorts, and the management of specified resorts. There are locations in California, Nevada, Utah and San Jose del Cabo, Mexico.
Greenberg, Whitcombe & Takeuchi, LLP (GWT), announced the deal on behalf of Pacific Monarch Resorts. The law firm acted as the seller’s primary corporate counsel in drafting, negotiating, and finalizing this agreement. GWT’s John Whitcombe and Michael Gibson served as primary corporate counsel to Pacific Monarch, which required the management of a bankruptcy as well working with regulatory and foreign counsel in reaching an agreement that includes the nine aforementioned resorts, management of named resorts, and a $275-loan to Pacific Monarch from Diamond Resorts.
Since Pacific Mountain Resorts filed a Chapter 11 bankruptcy, it allowed the assets to be transferred pursuant to court order and provided the necessary flexibility to complete the seller’s remaining succession plans. Katten Muchin and Ballard Spahr represented Diamond Resorts International in the negotiations that required more than 125 agreements and conveyance instruments to complete the complex transaction.
The dismal global economy of 2008 negatively impacted the business model of Pacific Monarch, leading it to seek counsel of the Torrance, California-based law firm, which represents both national and international clients in a wide range of businesses. "This is a great outcome for our client," said John Whitcombe of GWT.
“PMR was the victim of economic circumstances far beyond its control. Despite the economic meltdown and the inability of PMR's lenders to fulfill expectations, Mark Post, the CEO of PMR, was able to work closely with the team we put together to achieve a fantastic result, which will likely be the subject of business school studies for years to come."