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November 14, 2009

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Resort responds to foreclosure threat

Monday, Dec. 11, 2000 | 11:29 a.m.

The Regent Las Vegas responded to J.A. Jones Construction Co.'s push for court rulings on $30 million in mechanics liens against the Las Vegas resort, saying such a legal action would not result in the closure of the property.

Attorneys for J.A. Jones, the general contractor of the $270 million Regent, say they want a federal bankruptcy court to lift the stay imposed on state court cases dealing with mechanics liens against the property. If the lienholders were successful in proving their liens, state law would permit a foreclosure sale to pay the liens.

In a statement, the Regent said it couldn't respond directly to J.A. Jones' plans, since it hadn't seen a motion calling for the stays to be lifted. But it emphasized that "any motion filed by J.A. Jones could not result in an immediate foreclosure of the Regent, nor could it cause the Regent to close its doors."

If the stays on the lien cases were lifted, it is likely the bankruptcy court would allow a state judge to determine "the priority, validity and amount of the respective mechanics liens," but said any relief would remain up to the federal bankruptcy judge.

The first priority for repayment is now held by the holders of $100 million in first mortgage notes issued by the Regent.

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