Developer seeks funds owed on project
Developer William Plise agreed with creditors Thursday over most of the amounts owed on the $2 billion City Crossing mixed-use development in Henderson, though the structure of some loans left questions about exact outstanding balances.
Las Vegas-based Plise Development broke ground on the 125-acre project near Henderson Executive Airport in November and filed for Chapter 11 bankruptcy reorganization in June.
Plise said he's hoping for the successful restructuring of short-term debt obtained in early 2007, most of which matured in April.
"The lending environment out there is dismal at best," he said. "All of the lenders are effectively out of business."
Plise filed a plan of reorganization on July 2 seeking to market and sell the City Crossing project and distribute the proceeds based on order of priority. The plan represents the best alternative for maximizing asset values, Plise said.
He believes the project and underlying real property should be sold as an "integrated project" to get the most value. Otherwise, lenders will likely foreclose on their parcels at reduced prices and much of the City Crossing's value will be diminished.
Community Bank of Nevada, one of the creditors, agrees that any chance of a successful reorganization plan will be greatly enhanced by a court-ordered settlement conference, scheduled for September before U.S. Bankruptcy Court Judge Gregg Zive in Reno.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
