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Saturday, Sept. 5, 2009 | 1:17 p.m.
Related Documents (.pdf)
Related stories
- Lender sued over Lake Las Vegas loans (9-3-2009)
- Lenders to foreclose on Lake Las Vegas’ last golf course (6-29-2009)
- Judge approves bankruptcy for Lake Las Vegas golf course (6-29-2009)
- Another golf course to close at struggling Lake Las Vegas (6-25-2009)
- Lenders seek control of Lake Las Vegas hotel (6-4-2009)
- Residents of bankrupt Lake Las Vegas face uncertainty (3-23-2009)
- Lake Las Vegas can abandon golf course, judge says (1-15-2009)
- Amid the decline, decadence for the feet (1-5-2009)
- Judge: Lake Las Vegas golf course should be shuttered (12-22-2008)
- Resort golf course’s fate spurs debate (12-16-2008)
- Never spoil a good party with talk of a recession (8-29-2008)
- Bridge over troubled water (5-24-2008)
Related Documents (.pdf)
Map of Lake Las Vegas Resort
Lake Las Vegas Resort
1600 Lake Las Vegas Pkway, Henderson
The Lake Las Vegas development on Friday proposed a plan to emerge from its $728 million bankruptcy case -- a plan in which further development of the high-end community would include more affordable housing in response to the distressed economic times.
The plan also shows the development's lenders, led by Credit Suisse Group AG, would see a portion of their loans to Lake Las Vegas converted into a controlling equity interest in the development.
The plan is now subject to review by creditors and other parties and may face amendments and objections. Other parties, too, can file their own reorganization proposals.
And the plan could be moot if former Lake Las Vegas owners Transcontinental Corp. and Transcontinental Properties Inc. have their way.
They have asked the court to throw out the entire bankruptcy case, calling it a sham since Credit Suisse controls the Lake Las Vegas debtors and therefore is both its primary debtor and its primary lender and creditor. Lake Las Vegas has denied that allegation.
An Oct. 2 hearing is set on the motion by Transcontinental, which claims to be owed $1.4 million in the case.
A lengthy disclosure statement on the reorganization plan filed Friday with the U.S. Bankruptcy Court in Las Vegas did not project how much money creditors may eventually recover under the plan, which involves further land sales and continued litigation over several issues that may result in the recovery of funds for creditors.
In a statement issued Friday, the main debtor, Lake at Las Vegas Joint Venture LLC, said highlights of the restructuring also include:
-- The reorganized company having access to an additional $10 million in financing from one or more of the existing debtor in possession lenders.
-- Credit Suisse and the other pre-bankruptcy secured lenders receiving a share of ''certain litigation claims.''
-- General unsecured creditors receiving a share of a designated fund and a share of the litigation claims.
There is also expected to be provision for the completion of some work to enhance the development financed by local improvement district bonds, as well as payments to vendors that provided pre-bankruptcy infrastructure work.
"The company, the (lending) agents and the Creditors' Committee have worked hard to develop the foundation for a Plan of Reorganization that strikes a fair and reasonable compromise for all stakeholders while enabling reorganized Lake Las Vegas to succeed as the real estate market recovers," Frederick Chin, Lake Las Vegas president, said in a statement.
"Although there remain issues to work out, we anticipate this agreement will serve as a sound platform for the final round of negotiations on a consensual plan and a timely exit from Chapter 11," Chin said in the statement.
Lake at Las Vegas Joint Venture and its affiliates said in the statement they reached agreement on a reorganization plan term sheet with the Official Committee of Unsecured Creditors and the agent for its main lending facilities (Credit Suisse).
The disclosure statement said the plan includes a provision for settlement of a lawsuit filed by the unsecured creditors against Credit Suisse. That lawsuit accused Credit Suisse of predatory lending to Lake Las Vegas and said its conduct overwhelmed the project with debt while draining its equity, forcing it into bankruptcy as the economy slowed and the recession deepened. Credit Suisse has denied those allegations.
Lake Las Vegas said it hopes the reorganization plan can be considered by the court during an Oct. 15 hearing. The plan contemplates another hearing on Dec. 15.
"This accomplishment is particularly gratifying, given that we had no agreement among the various constituents when these cases commenced 13 months ago and in light of the unprecedented economic and operating challenges that have transpired since," Chin said in the statement.
John Cork, the chairman of the Creditors’ Committee, said in the statement: "Creditors, the city of Henderson and many other parties that will be directly affected have been very supportive of the parties’ collective efforts to move forward with a plan.''
Lake at Las Vegas Joint Venture last month reported it held assets of $191.2 million, mostly in undeveloped real estate, against liabilities of $728.4 million. Included in the liabilities is $675 million Credit Suisse says it is owed.
The 3,600-acre Lake Las Vegas, a development 20 miles southeast of the Las Vegas Strip, includes more than 1,600 residential units, three golf courses, two luxury hotels and a casino. Two of the golf courses are closed and the third is in foreclosure proceedings.
In its disclosure statement, Lake Las Vegas painted a grim picture of the real estate market throughout the Las Vegas area and at Lake Las Vegas in particular. The debtor said the project currently includes 405 unsold lots and 104 finished but unsold homes.
''The project is directly affected by the economic health and vitality of Las Vegas. As a consequence, performance of the actively-selling new residential subdivisions at the project has been dire,'' Lake Las Vegas said in its court filing. ''During 2009, 26 new homes have sold at prices that are up to 70 percent less than previous closing prices for the same type of home. Foreclosures are at a record high within the project; currently, there are almost 100 bank-owned properties.
''Asking prices for some of these bank-owned properties are up to 90 percent below their original purchase prices (some of which were purchased less than two years ago). Second home high-density and condominium prices have suffered the greatest drops,'' Lake Las Vegas said, adding it has sold no land to homebuilders and developers since filing for bankruptcy protection in July 2008.
''Market conditions are not expected to improve in the near term. Conditions are not expected to improve until excess supply is absorbed, the record level of foreclosures abates, real estate prices stabilize, gaming demand improves and unemployment levels decrease significantly,'' Lake Las Vegas said.
Lake Las Vegas said its new business plan over the next two years includes selling what land it can in Phases I and II of the project covering its central and southern areas. These holdings are expected to fetch an average price per acre of $215,000.
If the economy improves and credit markets loosen, Lake Las Vegas said it could be sold to a third party after about two years.
Also, after about two years, Lake Las Vegas said it hopes to develop Phase III, the northern portion of the project, as a more affordable component of Lake Las Vegas.
''That new business plan envisions a predominantly residential community that provides for a variety of housing types targeted to primary full-time homeowners. Previously, the debtors' business plan envisioned a second-home, high-end residential community surrounding a contemplated fourth golf course with homes at price points generally exceeding $1 million,'' the statement said. ''The revised plan does not contemplate an additional golf course, but instead provides for a network of trails, bike paths and open spaces for community residents. The revised plan is intended to accommodate families and other residents that seek a resort-like, active lifestyle with immediate access to an array of recreational amenities (lake, golf courses, parks and trail systems) as compared and contrasted to other master-planned communities in Las Vegas that lack the project's amenities.
''Based on the revised plan for Phase III, the anticipated price points for homes are also expected to be considerably less than the over-$600,000 historical average at the project,'' Lake Las Vegas said.
Phase III includes almost 600 developable acres and can accommodate up to 4,000 residential units, said Lake Las Vegas, adding it owns more than 80 percent of the remaining developable land in that phase.
you know what lake las vegas needs...
a trailer park!!!
that flushing noise you hear...
is lake las vegas going down the toilet!!!
I smell a rat or three.
The Unsecured Creditors waited a year after the bankruptcy, to sue alleging that Credit Suisse controls both the debtor and the secured lender, and that fraudulent conveyances to Credit Suisse and its loan participants have occurred. The remedy the Unsecured Creditors wanted was to be paid by Credit Suisse and their loan participants, even though Credit Suisse could just foreclose on the real estate and ignore the unsecured creditors.
What took the unsecured creditors so long to file their lawsuit? Anyone familiar with Lake Las Vegas told the Unsecured Creditors that Fred Chin and Atalon Group were front men for Credit Suisse all along. Anyone with half a brain knew that after 1/2/08 Credit Suisse and its loan participants were the ultimate owners of the LLV entities.
So, I smell a rat in the "announcement" in a Chapter 11 Plan that Credit Suisse and the Unsecured Creditors have settled their differences on a very impressive "fraudulent conveyance lawsuit" filed in the bankruptcy court just a few days ago.
That rat has a particularly odious smell because the Title Insurance Company for Credit Suisse's loan has just filed a lawsuit to "get out of defending against and paying mechanics liens" on the debtors' LLV property. Mechanics lien claimants are not the same thing as unsecured creditors, so you've got Credit Suisse and the unsecured creditors lined up to oppose the mechanics lienors and the title company.
From day one of the bankruptcy, the obvious principal purpose of the case was to allow Credit Suisse to use a Chapter 11 Plan to wipe out mechanics liens on the property which it would have had to have paid if it just foreclosed.
I smell yet another rat in this latest motion by a former equity owner, asking the bankruptcy case be dismissed. Why so long to file the motion, claiming the BK was filed in bad faith? That motion should have been filed a year ago!
Another smelly relationship is Fred Chin, LLV's Chief Restructuring Officer appointed at the request of Credit Suisse, and Mr. Chin as prior Chief Financial Officer for all of the Rhodes Homes entities. And guess who else is in bankruptcy, with a huge Credit Suisse multi-property mortgage strangling them? Rhodes Homes.
The only thing I can understand is why Credit Suisse wanted to make a mega-million dollar debtor in possession loan on Lake Las Vegas after a bankruptcy was filed. They would earn more "points" or "fees" in making that loan, plus a higher than market interest rate, while selling off the new DIP loan to third parties.
Bottom line Credit Suisse made 2 huge, stupid loans, one financing out the equity at LLV, and another financing God knows what for Rhodes Homes. Credit Suisse collected big "points" or "fees" on those loans, and then sold off the majority interest in those loans to third party investment funds. Credit Suisse looks like a predatory lender, wrecking LLV in the process.
Wow, I was going to ask CynicalO to comment, but he already did. Excellent info. Thanks.
Hey Bouvier, they want to sell "more affordable" homes. Bet your home is dropping in value daily. I was at LLV today, and the $16 barbecue and the $5 beer stands were as deserted as your golf courses. Nice place...
Now that we all know it was the greed of the bankers that caused the economic problem, why are they not held accountable? Instead we gave them billions to make sure they got thier excessive and undeserved bonuses, and made sure their companies had the money to stay in business. It's sad that when they warned us that we had to bail them out with billions in bail out money or the economy would tank, that was a lie. They kept the money for themselves and the economy is doing better despite them. We see now that the banks kept the money for themselves and actually loaned out less than before. Why didn't the government do anything about these lies? Is this the change we can believe in?
You get waht you pay for....OOOps no you don't. You get whats the banks give you, while they pocket Billions.
Typical peanut gallery, as usual commenting. Hmmm. I just came to my Lake Las Vegas Condo. The village was busier than I've EVER EVER seen! There was 3 or 4 weddings. Standing room only for the outdoor concert. Restaurants all full, all shops open and full. Parking garage was full. Casino was full, all tables but 3 were open. Guess what everyone? The village is getting stronger than ever! :)
I think the proposed plans sounds great! I was just thing more trails and green space. Love it! More affordable housing, doesn't mean trailer parks and Section 8. It means, not the usual million dollar homes. Nothing wrong with that. There will still be HOA's! :)
I'm still elated that I bought here. I have a blast here. Beautiful surroundings, lots of HOA's to keep things green and tidy. No powerlines running through it either.
So, with this post. I wish all of you simpletons who have nothing better to do than provide your false opinions about a neighborhood you don't live in well. I also wonder why you care so much. If you don't live in Lake Las Vegas, it's of no concern to you and none of your business. Why not direct your energy to your own neighborhoods and issues, which I'm sure there are plenty of. The real estate market is affecting EVERYONE! I won't be reading nor commenting any longer as debating with you is futile. Not worth my time or energy.
Bouvier has left house! (PS, you can find me on my patio, overlooking the lake and mountains enjoying the 75% occupancy in the village, which means profit to me)
Birdie, Bouvier is a sad example of a loser who bought at the wrong time, and is now turning delusional. He has signed off, but he'll still be reading the truth. "lots of HOA's"? God help this poor man...
Drain the lake, dismantle the leaking pipe, and put the water back into Lake Mead where it belongs. Cut off the empty golf courses, too, while we're at it. Nobody lives -or ever will live- in LLV.
Will the last one leaving turn off the lights?? Bouvier, I guess that means you......
Bouvier either DOESN'T own their condo or was given the money to buy that overpriced property. A deal like this would count your high end investment in half over night. You would never see that money again...never.Wake up !!
Bouvier
whatever you're smoking.......PLEASE pass it to the rest of us! we need that "get happy" feeling to forget reality.
btw - we all live here and have for a long time, some longer than others. and don't assume no one lives at LLV or doesn't know anyone that does. You put your pants on the same as everyone else so don't get uppity. Some probably felt as positive as you do at first and at the time, had every right to feel that way. But as the years went on and now this recession, reality has a way of biting you in the a** and trust all of us it'll happen to you too. and anyone can write about sitting on their patios or sitting in their pools with a nice cold one while looking at the mountains(which is pretty normal out here to do that). we want to hear from you 6 months from now. and since you just know everything there is to know about LLV and living there,you won't keep quiet. but my gut tells me that you'll be packing up to move back to wher eyou came from or licking your wounds while wondering WTH happend to those HOAs. guess we won't be hearing from you any more.
PS it's a holiday weekend - explains the crowds. a nice place to visit when you dont want to spend a lot of money.
I think the proposed plans sounds great!
lololol poor old fool. We've all been hearing about all sorts of "proposed plans" for years now.
I'm off to go lay at my pool with that cold one. I like the way the Spring Mtns look with the sun shining.
You know what Lake Las Vegas needs, a Harrah's property. So that you know that it will flush into Lake Meade in no time.
brillliant. build more homes in a ghost town when there's already a huge oversupply. recovery? not with that plan. who's going to buy and live in all these new homes? well here's another great idea: let's build a ski resort out there. nice.
"Casino was full" etc.. Someone is living in denial or is just plain lying...
Don't forget the sunscreen. That place is deader than the car battery in my olds. Something about Karma, and Henderson, I believe. When that chlorine plant blew back in the 80's, I knew that dark days were sure to come to that town; Darker than my ex-wifes hair coloring kit. Llv is going down faster than a hooker on crank.
I will see the light when llv is bought by chinese investors, flush with capital from trading with rogue nations.
Funny, it was really busy today at LLV. Good promotion with all kinds of barbecue. Then I figured out that all of the people had promos for free food. Which was fine, but the parking garage was still only half full. But it was nice to see that some people don't mind driving out there.
Tomorrow, I'm sure my Bud Keith and I will be the only drinkers at the bar. And the pit and the slots will be peaceful-like too peaceful. But hey-the rumor is that new operators are coming on board. Maybe they can consult with Bouvier, and figure a way to make it a successful operation. They can't squeeze the slots any harder, so their work is cut out. The current operators, PDS Gaming, have taken some machines out of the casino, so we know something is happening. Stay tuned....
Bankers have plenty of culpability for their creation of derivatives and credit swaps on these dangerously risky mortgages but, its the progressives and liberals who are as much if not more to blame by pushing home ownership for the unqualified (poor). though wanting the poor to own homes is a noble idea it wasn't grounded in financial common sense. allowing someone to buy a home who has no job and no income is a recipe for disaster. the "Community Reinvestment Act" was the cause of this disaster along with the Banker derivative monster.
my read on all this is that it was intentional and the CRA was part of the liberals "social justice" program. too bad (for Freedom) this ends in the destruction of the country as it is impossible to pay off the debt from all these social programs.
check out the derivatives (645 trillion) at usedebtclock.org... and AIG sold default insurance on the derivatives...!!! hahaha. that's 645 trillion that we'll (taxpayers) have to cover. Remember only about half to 2/3 of the country pay any federal taxes effectively.
usdebtclock.org
Commercial real estate is next.
FYI: Lake at Las Vegas Joint Venture, LLC and its affiliates - The Golf Club at Lake Las Vegas, LLC and SouthShore Golf Club, L.L.C. - filed a motion on Friday seeking court authority to reject all existing agreements for memberships at the SouthShore Golf Club at Lake Las Vegas.
More details on the motion: http://www.netdocketsblog.com/2009/09/la...
so to buy house in the falls is not a good idea? new to the area but prices seem good for golf course property, even if it is in forclosure.
i am not an old buyer with scars but a new buyer from Texas and it seems prices are fair, assuming the HOA continues to exist and golf courses can become in operation during the next year or two. If that happens then home prices should be safe or gain. some people in this area are about giving them away. As far as future developement that is probably a long way away. if the golf course was a giveup, then why does the Falls still water it, reflection bay also. for southshore seems it may be done for a long time.
my opion, green valley ranch with no view or yard but security, llv gives both, view and security.