New motion filed in Spanish Towers case

Attorneys for three major creditors in the Spanish View Towers bankruptcy case have filed a motion for appointment of a trustee or to oust old management, which is essentially developer Rodney Yanke, in favor of a neutral, third-party trustee to oversee the project.

The motion, filed Thursday, will be heard in U.S. Bankruptcy Court on Oct. 9.

The three creditors, who are represented by the Las Vegas firm Gordon & Silver, are HB Parkco Construction, which says it is owed nearly $32 million; Regional Steel, which says it is owed $3.1 million; and Nevada Ready Mix, which says it is owed $1.5 million.

Gordon & Silver also filed a motion in June for summary judgment against Tower Homes for claims of more than $38 million. U.S. Bankruptcy Court Judge Bruce Markell postponed that request.

The entire case was originally filed as an involuntary Chapter 11 bankruptcy but will now proceed as a regular bankruptcy case after Yanke decided not to contest it, an attorney for investors said.

Tower Homes owns about 15 acres near the Las Vegas Beltway and Buffalo Drive in the southwest Las Vegas Valley, site of the proposed $600 million Spanish View Towers high-rise luxury condominium project.

Construction was halted last year after an underground parking garage was partially built. The project was planned for 440 units in three 18-story towers. Unit prices ranged from $800,000 to more than $6 million.

Several buyers, some of whom say they lost $200,000 in reservation deposits, filed a class action lawsuit against the developer earlier this year.

One Cap Mortgage has the first deed of trust on the property and is allegedly owed $36.7 million with interest and other fees.