According to Reuters and recent filings with the SEC, “Marriott International, Inc. recently announced the completion of a private placement of Timeshare Loan Backed Notes by Marriott Vacation Club Owner Trust 2009-2. The notes were sold without recourse to Marriott or its affiliates.
Marriot which has around $2.6 billion in debt and a negative net worth of more than $600 million is scrambling to shore up its cash flows and balance sheet!
On October 21, 2009, Marriott International, Inc. sold another pool of approximately $380 million in timeshare mortgage loans (the “Mortgage Loans”) to Marriott Vacation Club Owner Trust 2009-2 (the “2009-2 Trust”).
Simultaneous with the sale of the timeshare mortgage loans to the 2009-2 Trust, investors purchased $317 million in 4.809% Timeshare Loan Backed Notes from the 2009-2 Trust in a private placement. It does not disclose who bought the notes.
To the ordinary mathematician these juggling of the books at MAR appear not to add up properly and the SEC is asleep at the wheel.
There is increasing evidence of an economic financial collapse in the entire Travel and Timeshare Industry, while Congress and the United States Air Force continue to negotiate and debate with Boeing and Airbus (EADs which has partnered with Northrup) on the future of a $40 billion contract for 179 Super Fuel Tankers which would buy bankers time to restructure the ailing production schedules of these global manufactures and employers of hundreds of thousands if not indirectly millions of people.
According to SEC filings, “On October 23, 2009, Wyndham Worldwide Corporation renewed its 364-day securitized timeshare receivables conduit facility through October 2010. The facility bears interest based on variable commercial paper rates plus a spread and has a capacity of $600 million”, according to the company’s recent SEC filings.
The mortgage meltdown, many analysts say, was caused by Fraudulent Mortgages being packaged into Trust Securities and sold on the global markets.
Lately, the only institutions able to invest in these fraudulent securities has been those backed by the Federal Reserve Banks who in turn basically just write the losses off into thin air because that is where all money comes from anyway. It’s called currency because it circulates like electricity through a circuitous route, out of nothing into something and back again into nothingness.
The International Bank Activities Reform Commission (IBARC) announced yesterday it is looking into the securities issued and backed by Timeshare Receivables of several large publicly traded companies where evidence of fraud exists due to the high pressure sales tactics of the industry that sucked people into filling out phony applications for loans secured by their interests in Timeshare Properties!
“What these companies are doing is more of the same as the mortgage banking industry just on a different day using other peoples promises to pay (notes are money), very much the same way as Enron and the mortgage industry did. Off balance sheet off shore fundings!
“They securitize these cash flows of receivables but the investors buying the notes usually violate one of the first laws or basics of fiduciary responsibility and common prudence by not knowing their borrowers detailed character directly”, said a spokesperson for IBARC.
In one Off-Balance Sheet Arrangement on September 24, 2009, Wyndham Worldwide Corporation’s subsidiary Sierra Timeshare 2009-3 Receivables Funding LLC issued $175,000,000 aggregate principal amount of 7.62% Vacation Timeshare Loan Backed Notes, Series 2009-3, due 2026 under an Indenture and Servicing Agreement, dated as of September 24, 2009, by and among the 2009-3 Issuer, Wyndham Consumer Finance, Inc., as the 2009-3 Servicer, U.S. Bank National Association, as the 2009-3 Trustee and the 2009-3 Collateral Agent .
The notes are allegedly secured under the 2009-3 Indenture primarily by a pool of pledged loans, each relating to the financing of one or more vacation ownership interests by a consumer, and related pledged assets.
In other words, the loans are backed by the generally hoodwinked consumers who are thinking twice about continuing to pay into an inflated system that keeps them broke and makes the global bankers illusionarily rich.
“What the International Bankers have done in this industry is appalling,” said one analyst who requested anonymity due to his high profile amongst the global investment community. “What they have done and what they are continuing to do is fractionalize the ownership of time and air.”
Marriott International, Four Seasons, Hilton, Ritz Carlton, Starwood, and Walt Disney are among six of the top companies engaged in the Timeshare Industry that are currently being investigated by the investigative journalist group that is supported by foreign interests who are wondering when the frauds are going to end!
There seems to be lots of regulation on the horizon but very little law enforcement going on at the Federal and State levels.
About the Author: The timeshare experts at Apex Professionals, LLC, concentrate on helping disillusioned timeshare holders to rid themselves of unwanted maintenance fees, unnecessary assessment costs, and to do away with those annoying high-interest mortgages by offering to take over unwanted timeshare agreements instantly. Related posts:
Discussion
No comments for “Is the Timeshare Industry Suffering the Same Fate as the Sub Prime Mortgage Meltdown?”