Court OKs sale of downtown Las Vegas casino property
A judge approved the sale of the Downtown Grand hotel-casino to Vegas Ventures LLC over investor objections.Summary
A Clark County District Court judge approved the sale of the Downtown Grand hotel-casino to Vegas Ventures LLC, rejecting objections from investors tied to the property's development and clearing a major hurdle to take the downtown Las Vegas property out of receivership. The court entered its findings of fact, conclusions of law and order approving the sale on Oct. 7, authorizing court-appointed receiver Paul Huygens of Province LLC to sell substantially all assets of the receivership estate to Vegas Ventures, free of liens or other claims, subject to the purchase agreement. The purchase price was not disclosed. Vegas Ventures, a Massachusetts LLC managed by Boston developer William "Bill" Keravuori, agreed to acquire the property after a marketing process and deposited $2.7 million into escrow on Aug. 13. It plans to assume the existing lease with Fifth Street Gaming LLC, which operates the casino, and select a third-party operator for the hotel, restaurants and other nongaming operations. The property has been in receivership since January after its ownership entities defaulted on a construction loan now exceeding $105 million. The court found the receiver conducted an appropriate sale process and that Vegas Ventures' offer was the best available, with no qualified bid exceeding Banc of California's estimated secured claim. The bank, formerly Pacific Western Bank, holds the senior lien and consented to the transaction. The court also found the agreement was negotiated at arm's length, without collusion and in good faith. The ruling addressed objections from limited partners associated with the junior secured lender, including 15 who filed a joint objection and three who filed individually. The court concluded the limited partners lacked standing and that their arguments lacked merit, and it raised concerns that representing other limited partners without a Nevada law license could constitute unauthorized practice of law. The sale transfers the assets free and clear of liens and claims, with interests attaching to the sale proceeds.
(Source：Las-vegas Review Journal)