The Nevada Gaming Commission on Thursday took no action on a conditional recommendation from the state Gaming Control Board that would have allowed Ronald Johnson to operate the struggling Las Vegas Hilton as court-appointed receiver.
As of Thursday, Clark County District Judge Elizabeth Gonzalez had not ruled on whether Johnson would be appointed receiver of the property. Lender Goldman Sachs Mortgage Co. had made the request in anticipation of a court ruling.
Commission Chairman Peter Bernhard said the commission would wait until its next meeting, on Dec. 22, to see whether the judge had ruled on the request before permitting Johnson to manage the property.
Colony Resorts LVH Acquisitions LLC, a subsidiary of billionaire Thomas Barrack’s Los Angeles company Colony Capital LLC, owns the Las Vegas Hilton. Colony Resorts and Goldman Sachs are due in court for another hearing on Dec. 13.
Bud Hicks, a partner in the Las Vegas firm McDonald, Carano, Wilson LLP, who is representing Goldman Sachs, told the commission that the lender has filed a notice of sale for the Las Vegas landmark, but no foreclosure date has been set.
In August, Colony Resorts disclosed it had defaulted on its $252 million term loan after skipping three payments to conserve cash for operating expenses.
"We are trying to reach a resolution that satisfies everyone," Hicks said. "No one wants a train wreck in this situation."
Goldman Sachs has been trying to foreclose on the 2,950-room property and install Johnson as a receiver to displace current management.
Hicks said both sides had worked together to address issues associated with the property.