Casino Data sues to protect equipment sold to Nevstar

Grace Leong

Friday, April 7, 2000 | 10:41 a.m.

A casino supplier is taking legal action to ensure it can repossess its video slot machines, signs and accessories from Nevstar Gaming & Entertainment Corp. of Las Vegas, owner of the now-closed Mesquite Star hotel-casino.

Casino Data Systems Inc. of Las Vegas, which said it is entitled to repossess the gaming equipment it sold to Nevstar because it defaulted on outstanding payments totalling $101,000, said it filed a lawsuit to protect its property from being damaged, removed or sold to another buyer as the Mesquite casino's assets are now being liquidated.

Nevstar filed for bankruptcy protection on Dec. 1, claiming assets of $22.2 million and debts of $23.5 million. But the bankruptcy court rejected the company's reorganization plans, authorizing its creditors to take action to recover their property starting Feb. 29.

"After a bankruptcy petition was filed, there are automatic stays issued to keep creditors from descending on the debtor all at once," said Bradley Ballard, Casino Data's attorney. "The suit is a necessary procedure. Though Nevstar agreed to the termination of the automatic stay, it didn't agree to release the property."

"We're taking preemptive action to prevent them from refusing to return the property," he said. "When the vultures start descending, some of them may take things that don't belong to them. Property has a way of disappearing, especially in the context when someone is insolvent."