Former Maxim operator wants bankruptcy hearings in Nevada

Gary Thompson

Tuesday, Jan. 18, 2000 | 11:06 a.m.

Former Maxim hotel-casino operator Ed Nigro has asked a federal judge in Texas to allow bankruptcy cases involving his company and the resort's owner to be heard in Nevada.

Nigro's Max Gaming LLC urged the U.S. Bankruptcy Court in Dallas to transfer a case involving Maxim owner Premier Interval Resorts Inc. to Las Vegas. It also filed motions opposing Premier's bid to have Max Gaming's bankruptcy case moved to Dallas from Las Vegas.

Premier filed for bankruptcy protection in Dallas after a district court judge in Nevada dissolved a temporary restraining order Premier had obtained that froze Max Gaming's accounts.

Premier got a new TRO from the bankruptcy judge in Texas, forcing Max Gaming to file bankruptcy to protect itself from creditors' claims.

In the latest filings, Max Gaming attorneys Gerald Gordon, Troy Phillips and Scott Fleming said the evidence "is overwhelming" that the two bankruptcy cases should be heard in Nevada.

They noted that Premier's only asset -- the Maxim -- is located in Las Vegas. They said 26 vendors and suppliers and more than 500 Maxim employees are still owed money, and all are located here as well.

They also said Nevada gaming regulators have to approve the liquidation of any gaming devices such as slot machines.

And they said state gaming regulations require the casino licensee -- Max Gaming -- to make sufficient money available to redeem outstanding gaming chips and tokens. As of two weeks ago, the attorneys said, only $176 of an estimated $40,000 of chips have been redeemed.

The Nevada Attorney General's office joined in Max Gaming's motions, arguing the cases should be heard in Nevada because of several workers' compensation issues.

Max Gaming, which had been designated a trustee of and licensed by gaming regulators to operate the Maxim in a prior bankruptcy case, was retained by Premier to continue running the resort when Premier bought it last spring.

Max Gaming claimed Premier defaulted on its lease agreement and failed to supply enough money to keep the hotel-casino open during slow period, necessitating the closure of the property.

The Maxim closed Nov. 21, but Premier later reopened 400 of the 800 rooms in time for the New Year's Eve weekend. It didn't reopen the casino or all the property's restaurants and shops.

Michael Kornman, president of Dallas-base Premier, didn't return phone calls requesting comment on the Max Gaming motions.