Judge blocks foreclosure of Saxton building

Thursday, Jan. 24, 2002 | 11:04 a.m.

A U.S. Bankruptcy judge Wednesday blocked an immediate foreclosure of the corporate headquarters of Las Vegas developer Saxton Inc. by its largest creditor, Midland Loan Services Inc.

An involuntary Chapter 7 bankruptcy petition to liquidate Saxton's assets was filed against the Las Vegas developer on Dec. 20 by two other creditors, including Wells Fargo Bank, who say they are owed $712,560 in unsecured claims.

Saxton said the involuntary petition was filed to block attempts by its biggest creditor, Kansas City, Mo.-based Midland Loan -- which is owed $4.1 million -- from foreclosing on Saxton's corporate office at 5440 W. Sahara Ave. A foreclosure would likely prevent other creditors from being paid.

Saxton said it is in talks to sell the building and has also been negotiating to lease its vacant third floor.

U.S. Bankruptcy Judge Linda Riegle prohibited a foreclosure sale by Midland for 90 days to give Saxton time to take care of the Midland debt.

"There needs to be deadlines so Midland Loan can be paid," Riegle said.

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