Ex-Tanner & Haley VP to Get Payout

Tanner & Haley Resorts is free to pay a top executive $300,000 to drop $46 million in claims against the company, a bankruptcy court has ruled.

The U.S. Bankruptcy Court in Bridgeport, Conn., on Friday approved a settlement between Tanner & Haley and Michael Shelton, a member of the company's board of managers, according to court documents.

Under the settlement, Shelton will receive $300,000 in exchange for dropping $46.2 million in claims stemming from unpaid compensation and expenses.

Shelton was an executive vice president of Preferred Retreats Design Group Inc., the management arm of the company, until June. He is also a member of the company's board of managers. According to court documents, he was not paid for work he did between June and October.

As part of the settlement, Tanner & Haley will pay him a retroactive monthly salary of about $23,000 to cover the period between June 23 and Aug. 31, according to court documents.

Tanner & Haley filed for Chapter 11 protection in July 2006. It ran three "destination clubs" _ Private Retreats, Distinctive Retreats and Legendary Retreats _ that leased luxury homes to dues-paying members. It sold its real estate assets to Ultimate Resort LLC for $100 million, completing the sale earlier this month. The court has approved its bankruptcy plan.