Monorail leaders vow another attempt to revive rail line
The leaders of the Las Vegas Monorail have vowed another attempt to get the rail line out of Chapter 11 bankruptcy.
U.S. Bankruptcy Judge Bruce Markell on Friday rejected the monorail's plan for repaying creditors, finding that the financial gaps were so serious that it set the stage for another failure in the next few years. The monorail wound up in bankruptcy early in 2010 because it could not cover the payments on $658 million in bonds sold a decade ago to rebuild and expand the line.
"We are disappointed by Judge Bruce Markell's decision, especially in light of the fact that the plan received overwhelming creditor support," monorail CEO Curtis Myles said in a statement. "However, we have reviewed Judge Markell's order and will be discussing it with our creditors as we go forward to formulate and file with the court a revised plan of reorganization."
Myles reiterated that despite its financial woes, the monorail has succeeded in reducing traffic congestion and air pollution. However, Markell wrote that "this is not the test" of whether a Chapter 11 plan passes legal muster.
Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.
