Developers ordered to surrender luxury cars, motorcycle
Two developers of an extended-stay suite property that has gone into bankruptcy were ordered to surrender their luxury cars as a start to bringing down the lender's losses.
On Tuesday, Clark County District Court Judge Susan Scann allowed East West Bank to take possession of the vehicles but not yet liquidate them. The final decision on what to do with them will come after a ruling on the Chapter 11 case of Russell Boulder LLC, which owns the 600-unit Siena Suites on Boulder Highway.
Last November, Scann entered an order that six developers behind Russell Boulder had personally guaranteed the loans on the project. The total amount due has reached $45.5 million, with interest running at $12,000 a day.
In the first step to paying down the guarantee, Michael Mixer will have to give to the bank a 2005 Ferrari 612 coupe and a 2007 Cadillac Escalade SUV. Todd Nigro must hand over a 2007 Harley-Davidson and a 2008 Porsche Cayenne.
The hearing on the Chapter 11 reorganization plan for the Siena Suites is scheduled for June. If the result reduces or eliminates the liability, the bank may have to return the vehicles in return for a storage fee.
