Lake Las Vegas will seek OK to abandon golf course
Lake Las Vegas, the 3,600-acre Henderson community that filed for Chapter 11 bankruptcy in July, is giving up on the Falls Golf Course.
The debtor intends to ask bankruptcy Judge Linda Riegle for permission to abandon the golf course, setting the stage for foreclosure by the holder of a $15 million loan secured by the Tom Weiskopf-designed golf course.
Frederick Chin, president of Lake Las Vegas Joint Venture and affiliated companies, in November reported to the judge that the loan amount exceeded the value of the golf course. He also said the company was losing money on operation of the golf course and would lose even more money if it closed the course and just maintained it.
The lender, Carmel Land & Cattle Co., filed a response to Chin's proposal on Tuesday, agreeing to the abandonment but criticizing the debtor companies.
Chin's declaration reverses the debtors' position earlier that the Falls and Reflection Bay Golf Courses were key to restructuring Lake Las Vegas, according to the Los Angeles' law firm of Irell & Manella, which represents Carmel.
The Vineyards at Lake Las Vegas, the affiliate that owns the course, originally borrowed $24 million from Wells Fargo Bank. In October 2007, the loan went into default and the loan was acquired by Carmel Land & Cattle Co.
Vineyard was allowed to use some of the proceeds of a loan obtained after the bankruptcy filing for the Falls.
Despite efforts to make the course profitable, Chin said the golf course is expected to lose $1 million monthly between August 2008 and July 2009.
Vineyard has been unable to negotiate release of the property to Carmel since Vineyard decided to abandon the property in August, Chin said.
Some residents of Lake Las Vegas paid for the ability to play golf at the Falls and Reflection Bay, Chin said. Guests of the Ritz-Carlton Lake Las Vegas Hotel get preferred tee times and rates at the Falls.
Chin said Lake Las Vegas "will endeavor to offer similar arrangements" for hotel guests and the residents with golfing privileges.
Attorneys for Carmel criticized the Lake Las Vegas proposal.
The bankruptcy judge will hold a Dec. 12 hearing on the proposed abandonment of the Falls.
Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.
