Lender says Vegas hotel-casino failed to pay back loan

Friday, Oct. 27, 2000 | 11:22 a.m.

A Los Angeles loan company is seeking a receiver to take possession of the Vacation Village hotel-casino at 6711 Las Vegas Blvd. South after it allegedly defaulted on a $19 million loan.

In a Clark County District Court lawsuit, Foothill Capital Corp. sued Vacation Village Inc., its affiliate Shangri La Ltd. and five individuals it identified as general partners of Shangri La.

Foothill said it issued a one-year loan of $19 million at an interest rate of 14 percent, and that Vacation Village defaulted by failing to repay the loan when it came due Sept. 14. The suit said $19.35 million was due as of Oct. 23.

Foothill, which said Vacation Village secured its inventory, accounts receivables, proceeds, rents, profits, property and catering facilities against the loan, is seeking an order to stop the defendants from transferring Vacation Village's assets and destroying its books and records.

The defendants could not be reached for comment on the lawsuit's allegations.

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