Mesquite firm entangled in bankruptcy, lawsuits

Thursday, July 18, 2002 | 11:09 a.m.

Paradise Canyon LLC, which owns Wolf Creek Golf Club in Mesquite, filed Chapter 11 bankruptcy on Friday to avoid being foreclosed on by the First National Bank of Fulda in Fulda, Minn., after the company defaulted on payments of a $10 million loan on July 1.

"The company is looking for between $1 million to $1.5 million in financing to carry it through the remaining slow months of summer through late fall," said James Greene, Paradise Canyon's attorney. "We're looking at our options at this point. We could either sell the property or refinance or restructure our existing debt."

The company listed assets of $19 million and liabilities of $380,227 in its bankruptcy filing. But Greene said the company plans to amend its filing to include claims of up to $11 million.

Meanwhile, Paradise Canyon principals Douglas Clemetson and Dennis Rider are the subject of several lawsuits filed by subcontractors, developers and creditor Vestin Mortgage Inc.

Vestin filed three lawsuits against Clemetson and Rider, alleging they failed to honor agreements to guarantee three defaulted loans. These loans include a $7.5 million loan and a $4.37 million loan to Mesquite 643 LLC -- an entity jointly owned by the defendants and that owns some land parcels in Mesquite -- and a $10 million construction loan to Falcon Ridge Golf Club -- a golf course located adjacent to Wolf Creek.

Las Vegas subcontractor Turf Equipment Supply Co. sued to recover $295,231 for unpaid irrigation equipment installed at Falcon Ridge, while Pacific Aquascape International Inc. sued to recover $385,265 in unpaid work at Falcon Ridge.

Two developers filed two lawsuits against Mesquite 643 and Corcha LLC, an entity owned by Clemetson, alleging they were sold land parcels in Mesquite that were the subject of mechanic's liens and seeking payment for materials and services provided to Corcha.

Developers Mesquite BR Plus LLC and Mesquite Jeremiah LLC said the land parcels have become "unmarketable and virtually impossible to develop" because of the liens.

The defendants could not be reached for comment on the lawsuits.