Friday, May 1, 2009 | 12:57 p.m.
- Kats Report: Bankruptcy's a beach as Jim and Glynda hit Cabo (4-9-2009)
- Kats Report: No more $20,000 guitars? Rhodes' bankruptcy to be felt in uncharitable ways (4-3-2009)
Beyond the Sun
Even as he works to bring his homebuilding company out of bankruptcy, Las Vegas developer Jim Rhodes has been sued by a local bank over a loan that is not part of the bankruptcy case.
Community Bank of Nevada sued Rhodes in Clark County District Court on Wednesday, saying he's failed to fulfill a personal guarantee on a loan made in December 2005 to one of his companies called Tropicana Durango Ltd.
"Loans collateralized by real estate in Las Vegas have been taking a beating over the past year. We have tried to work out an agreement with Community Bank of Nevada to restructure this loan, and we are open to discussing a reasonable solution to maintain the loan's performing status,'' Rhodes responded in a statement issued Friday. "If the bank feels that a lawsuit is the best alternative, then we will have to work it out in court."
Community Bank said the loan was issued for $2.625 million and that it went into default on March 15, with $2.191 million due as of April 7.
The lawsuit alleges Rhodes personally guaranteed the loan and waived any requirement that the bank seek payment from the Tropicana Durango company before demanding he pay the debt.
The loan involves some 10.7 acres of undeveloped land that Tropicana Durango has southwest of Tropicana Avenue and Durango Drive, Rhodes spokesman Bill Marion said.