U.S. Bank has asked a judge to appoint a receiver to take control of Jerry’s Nugget, a North Las Vegas casino known for its bakery and locals-friendly atmosphere.
In the complaint filed March 6 in state court, U.S. Bank alleges that Jerry’s Nugget defaulted on a $3 million mortgage loan initiated in November 2005. The loan was converted to a revolving line of credit for $3.6 million in May , secured by a deed of trust for the property at 1821 Las Vegas Blvd. North.
Jerry’s Nugget Chief Executive Joseph Stamis said the casino and bank have reached an agreement to settle the complaint. A court hearing scheduled for Tuesday was continued until March 28 in anticipation of the settlement, he and bank representatives said.
Stamis said he expects to have a loan modification completed within the next couple of days. The loan was used for remodeling work, and then business took a dive in 2006, he said.
More than five months have passed since the loan became due, and Jerry’s Nugget has failed to repay U.S. Bank $3.2 million plus $27,558 in interest, according to court documents.
In January, U.S. Bank sent a notice of default to Jerry’s Nugget and started a nonjudicial foreclosure against the property. The bank sought a receiver to prevent the casino’s closure.
“If the casino, restaurant and related businesses being operated on the property were to shut down, U.S. Bank and Jerry’s Nugget’s other creditors would be irreparably harmed, as the value of the property would decrease immediately and significantly,” U.S. Bank attorney Jeannette McPherson wrote in the court filing.
Jerry’s Nugget, founded in 1964 by Jerry Lodge and Jerry Stamis, was originally the site of the Town House. The casino underwent a major renovation in 1995, expanding the gaming floor and adding a porte cochere, water fountain, restaurant and nightclub.
Along with the motion to appoint a receiver, U.S. Bank also filed a motion for an order to grant the receiver possession and control of Jerry Nugget’s financial accounts and cash receipts, expenses and injunctive relief.
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