Fairmont Resort Properties restructures debt

Press release — Fairmont Resort Properties Ltd. –

On March 30, 2009, Fairmont Resort Properties Ltd. was made subject to creditor protection under the Companies Creditor’s Arrangement Act “(CCAA”). This process allows the Company the opportunity to present a plan to restructure its obligations to the benefit of all stakeholders including secured and unsecured creditors, employees and customers. Fairmont time share owners are not affected by this plan of arrangement and continue with the rights their acquired at the time of their purchase. The management of the facility, Fairmont Vacation Villas, is operated by Columbia Villa Management and is also not subject to the CCAA order. It operates independently of Fairmont Resort Properties Ltd.

Pursuant to the court order for the plan of arrangement, new management was appointed with Mr. Collin Knight and Mr. Doug Morcom not involved in the management at this time.

All debts of the Company at the date of the application were stayed awaiting court approval of Fairmont’s restructuring plan. All goods and services supplied by the Company’s customers since the date of the application are acquired and dealt with in the normal course of business.

Notwithstanding the situation of Fairmont Resort Properties Ltd., all timeshare owners will enjoy their vacation at Fairmont Vacation Villas this year and in the future without interruption.

CVNews related links:

• Ernst & Young – Initial Order, March 30, 2009
• Ernst & Young – Affidavit of Gary L. Bentham, March 30, 2009