Court hearing to decide fate of Moulin Rouge

The fate of the new Moulin Rouge will be determined Friday when a District Court judge will decide whether to approve the sale of the property to Moulin Rouge Holdings LLC, a company that is in the process of securing its funding.

“The deal is still on very shaky legs,” said Kevin Hanchett, the receiver of the Moulin Rouge property.

Boris London, managing member of Moulin Rouge Holdings LLC, has put $500,000 in an escrow account with Fidelity National Title Group toward the purchase of the downtown Las Vegas site. However an attorney for London, William Devine of Devine Law Firm, on Tuesday filed an objection to the motion to approve the sale.

Devine declined to comment by deadline. London also declined to comment.

“They’re saying that the money in the escrow right now cannot be used for this transaction,” Hanchett said.

Hanchett said Scott Johnson, a member of Moulin Rouge Holdings LLC, said he will be reimbursing London and will be moving forward with a deal with another investor. London and Johnson have been at odds over various issues regarding management of the project.

Johnson could not be reached for comment by deadline.

“Nothing’s impossible, but transactions that are taking place at the last minute always make me nervous,” Hanchett said.

A groundbreaking for the project at 900 W. Bonanza Road was held in May. The projected budget for the development is between $100 million and $150 million.

Contact Nicole Raz at nraz@reviewjournal.com or 702-380-4512. Find @JournalistNikki on Twitter.