Commission approves Cashell to take the helm at Ormsby House

Thursday, Sept. 25, 1997 | 11:23 a.m.

The commission accepted a recommendation from its investigative arm, the state Gaming Contrl Board, that Cashell go through another review in April 1998. The limitation was imposed because of concern over the possibility of continued hard times this winter at the resort.

Cashell, who also served as Nevada's lieutenant governor, will run the Ormsby House for Cerberus Partners, a lending company owed an estimated $6.8 million. He'll try to keep the club open while a buyer is sought.

Cashell said he plans a management shuffle, and hopes to protect the jobs of about 200 employees at the Carson City landmark, located across the street from the Legislative Building.

He also said Cerberus is providing another $500,000, and that should help carry the club through early 1998.

Asked by Commission member Sue Wagner whether he planned to live at the club - given his comments that he intends to work 70 to 80 hours a week there - Cashell quipped, "They tell me the only operator who made money there shows up as a ghost. So I thought I'd move in and see what he did."

That was an apparent reference to the late Woody Loftin, who successfully ran the club after taking it over from the Laxalt family. Employes called the gray-haired Loftin, who spent long hours at the Ormsby, "the gray ghost."

Cashell's involvement wasn't opposed by Bruce Dewing, who had been serving as Ormsby House president and chief executive officer.

Cerberus sought to foreclose on the property in January when owner Barry Silverton missed a $65,000 mortgage payment. Total debts now are estimated at $12 million.

The Ormsby House and Silverton filed for Chapter 11 bankruptcy protection, and during bankruptcy proceedings, Dewing was named president and CEO. But he was unable to find a buyer.

Cerberus attorney Dan Reaser has said Cashell should be able to stabilize the club's finances with funding from Cerberus, adding, "If Bob Cashell can't turn that property around, no one can."