Bankruptcies in Las Vegas tend to receive more attention than in other parts of the country because so many of them involve high stakes. The MGM Mirage money problems involving the development of CityCenter are well known, coming to light in 2009. When it is necessary to make a $200 million construction payment, there aren’t that many entities that can beg, borrow, or steal that much money at one time.
Personal bankruptcies in Las Vegas have increased as well since the housing crash and ensuing drop in property values. Older residences where owners have paid their mortgages for many years have survived best, but no one is immune to drastic changes in what their homes and businesses are worth.
The Holsum Lofts
Recently, the owner of the Charleston Boulevard Holsum Lofts filed for Chapter 11 reorganization. This redevelopment of an old bakery has been seen as a key to the arts scene in downtown Las Vegas. Jeffrey LaPour, the CEO of the company, has been sued by investors in Clark County District Court. The business was formerly known as LaPour Grand Central LLC.
The office and retail complex has 19 units leased in its 46,500 square foot facility. That is obviously insufficient to generate the necessary revenue for the reported $6.46 million in default as filed with District Court Judge Elizabeth Gonzalez.
Gonzalez has approved the request of the debtors to place the property with a receiver to manage it while the foreclosure takes place. There is a possibility that this move might be blocked due to the bankruptcy filing by LaPour.
Chapter 11 is the designation for a business that wants to continue to operate while getting debt repaid. With such a large amount of money on the table, the creditors will have their own plan for reorganization, and the judge will listen to their input as well as that from the LaPour camp.
Charleston & 28th
In the same part of the city, Charleston & 28th LLC formerly filed for Chapter 11 on June 22. This was also a counter measure to stop a foreclosure by creditors. The property is east of Fremont Street and encompasses four buildings that comprise a shopping center. Not as large as the Holsum Lofts, the retail space is just less than 8,000 square feet and the debt behind it is $2.33 million.
Weighing All the Options
No business or individual is bullet proof in the current economic conditions, and bankruptcy is often the only realistic avenue to follow. Because that decision is one that cannot be reversed, it is imperative that a person weigh all options before proceeding with bankruptcy filing. Every business or personal bankruptcy is different from another, and a legal professional should be counseled before a decision is made.
The one thing that is evident from the news is that foreclosures and bankruptcies remain a part of the landscape in Las Vegas. The careful use of credit and investment are the long-term moves for protection from Chapter 7, 11, and 13 bankruptcies, but that may not be an option at the present time.
This article was written by Mary A. on behalf of Las Vegas Bankruptcy Lawyer Anthony Deluca and his firm Deluca & Associates.