Lake Las Vegas may soon pass to Credit Suisse

A bankruptcy judge on Friday suggested that attorneys for Lake Las Vegas may be wrapping up financial arrangements so investment bank Credit Suisse can take over the troubled 3,600-acre Henderson community built around a man-made lake.

Credit Suisse lent money to the development based on real estate collateral.

Bankruptcy Judge Linda Riegle made the comment during a hearing in the bankruptcy case. Earlier, Carmel Land & Cattle Co., which has a $15 million loan secured by the Falls Golf Course, questioned the viability of Lake Las Vegas' reorganization plan, because the debtor was seeking to abandon the golf course and previously had said the course and another golf course were key elements to restructuring the company.

"In their motion to abandon the Falls Golf Course, the debtors have done a 180-degree turn from (Lake Las Vegas President Frederick Chin's) testimony that the golf course was necessary to an effective reorganization," attorneys for Carmel Land wrote. "This calls into question the debtor's judgment and credibility."

Lake Las Vegas has prepared a draft plan of reorganization, but the draft plan isn't a public document.

In court papers, Chin has said the golf course is worth less than the money owed and said he wanted to stop losing money on the course. The course recorded a $2.4 million operating loss last year and is expected to have a $2 million operating loss this year.

Riegle was expected to hear arguments over the planned abandonment and foreclosure on the golf course, but she told about a dozen attorneys Friday that she wanted to conduct an evidentiary hearing on the matter. Some parties were not prepared to present evidence and she postponed the hearing on the course abandonment until Dec. 22.

Lake Las Vegas attorney Thomas Peterson suggested the golf course could continue scheduling tee times until that date but said Carmel Cattle had informed him of plans to close the golf course after foreclosing.

Attorneys for some property owners at Lake Las Vegas say closing the course will diminish the value of their real estate.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.