Lake Las Vegas Takes Step Toward Reorganization

Plan materials and ballots were scheduled to be mailed this week, with a deadline for returning ballots of May. A hearing to confirm the Plan is expected to occur in June.

Frederick Chin, president of Lake Las Vegas, said in a prepared statement that the plan "maximizes value under extremely challenging circumstances, ensuring that recoveries are allocated fairly among the company's stakeholders and provides for Lake Las Vegas to emerge from Chapter 11 as a viable entity."

The master-planned residential and resort community is adjacent to Lake Mead National Recreational Area and 20 miles east of the center of Las Vegas. It includes a 320-acre man-made lake and more than 1,600 completed residential units. Lake Las Vegas filed for Chapter 11 protection from creditors July 17, 2008.

A GlobeSt.com report at the time said that the project's developers were unable to find outside financing to pay its creditors and that the Chapter 11 filing would aim to restructure the business plan for the project.

The Chapter 11 filing for Lake at Las Vegas JV LLC listed liabilities of between $500 million and $1 billion, assets of between $100 million and $500 million, and more than 1,000 creditors. LLV Holdco LLC, a subsidiary of Las Vegas-based Atalon Group owned by Chin, assumed ownership and management control of the project in early January 2008 after the former ownership group defaulted on approximately $540 million in loans in 2007. Chin at the time cited a combination of poor liquidity, substantial debt service, extremely challenging real estate market conditions and other legal and financial issues, as the reason for the filing.