Contractor ask for foreclosure

Thursday, May 10, 2001 | 10:35 a.m.

A construction company has demanded foreclosure of its mechanics lien against the Regent Las Vegas, claiming it has not been paid for work performed on a retail outlet at the Summerlin hotel-casino.

Quality Mechanical Contractors said it performed work on Teuscher Chocolates, a store at the Regent, but its demands for payment from the Regent and Teuscher have not been met. It is seeking the foreclosure sale of the Regent to satisfy a mechanics lien it filed against the property in October. Quality did not specify how much it was owed, saying only that the amount was in excess of $10 million.

The Regent is currently operating under Chapter 11 bankruptcy protection, and efforts are now under way to sell the property. The property's debt levels are estimated to exceed $300 million.

State Judge James Mahan is set to begin a trial on May 30 to determine if lienholders are eligible to receive payment before other debtholders. Lien claims against the Regent total about $30 million.

"From our perspective, that (the Quality lien) is a pre-(bankruptcy) petition claim that should go in with all the other claims," said Regent Chief Restructuring Officer Lanis O'Steen. He declined to comment on the validity of the claim.

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