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November 15, 2009

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Foreclosure auction delayed

Monday, May 15, 2000 | 10:44 a.m.

The foreclosure sale of the Maxim hotel-casino was delayed this morning following a legal maneuver by the owner of the property.

Attorneys for Atlanta-based Meralex, the Maxim's mortgage holder, requested a one-week delay in the auction. The sale is now scheduled for May 22.

The delay follows a motion by AE Marketing, a company controlled by Maxim controlling shareholder Gary Kornman, to move a pending lawsuit against Kornman and Meralex to federal court. This lawsuit, filed last month by three former shareholders in Kornman's Premier Interval Resorts, alleges that Kornman and Meralex intentionally drove the Maxim into insolvency and will divvy up the profits from a foreclosure sale.

John Curtas, attorney for Meralex, said a temporary restraining order issued by a state judge against the sale expired Friday. However, he said he needed to clarify whether Meralex could proceed with the sale before holding the auction.

Premier defaulted on its $42 million mortgage to Meralex late last year. Meralex attorneys say the company is incurring $20,000 in operating losses per day keeping the Maxim in partial operation.

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