Two Israeli businessmen, who were part of a group that planned on building a $6 billion version of New York’s Plaza hotel on the site of the New Frontier, are on the verge of losing their stake in the cancelled project.
The Israeli newspaper Haaretz reported Yitzhak Tshuva, Nochi Dankner and Dankner's IDB group are asking lenders to write off $375 million of an original $620 million loan that was used to acquire the 35-acre New Frontier site for $1.24 billion from Phil Ruffin.
The New Frontier was demolished in 2007 but the Plaza project, which was to include a hotel-casino, condominium, retail and dining, was cancelled.
Now Dankner and Tshuva - through Dankner's Property and Building and IDB Development Corp., along with Tshuva's Elad Group - are no longer meeting the conditions of the loan.
Haaretz reported the group received a two-month extension in August to refinance the loan. IDB and Elad don't have the cash and the land may be turned over to the lenders if a deal can’t be reached.