Epic Resorts Gets Operating Loan

KING OF PRUSSIA, PA— H.N. Schnelling, the Chapter 11 Trustee of Epic Resorts, LLC and certain affiliated debtors, said that the company has entered into an agreement, subject to the approval of the United States Bankruptcy Court, to obtain a $4.475 million post-petition operating loan to be provided by certain investment funds managed by Highland Capital Management, L.P. Epic Resorts and various of its affiliates have been in Chapter 11 proceedings since July, 2001. Schnelling was appointed as Trustee in March, 2002. Schnelling said this loan is an important step in stabilizing and restructuring the Epic Resorts operations. In order to close this loan and provide funding for local resort operations, the Trustee has filed Chapter 11 cases for certain subsidiary development companies, namely Epic Resorts-Hilton Head, LLC, Epic Resorts-Westpark Resort, LLC, Epic Resorts-Scottsdale Links, LLC, and Daytona Beach Regency, Ltd. Funds will be available for critical operating costs, including employee costs, pending a going concern sale of the business. Epic Resorts remains committed to maintaining its relationships with the Club Members, suppliers and employees and to “providing an enjoyable vacation experience at its resorts.”