Desert Capital examiner: Creditors have indenture and guaranty claims

By Caroline Salls

Pittsburgh, Dec. 29 - An examiner appointed for Desert Capital REIT, Inc.'s bankruptcy case said several creditors have valid claims in the form of either an indenture or guaranty, according to a Dec. 28 filing with the U.S. Bankruptcy Court for the District of Nevada.

As previously reported, the examiner was charged with investigating whether Taberna Preferred Funding VI, Ltd., Taberna Preferred Funding VIII, Ltd., Bank of Nevada or "The Warm Jones Lenders" have claims against Desert Capital REIT or a subsidiary or affiliate.

"The Warm Jones Lenders" comprise 20 individuals, trusts and partnerships.

Although the creditors have valid claims, examiner Dotan Y. Melech said further investigation may be required on the amount of the claims.

On April 29, 2011, an involuntary Chapter 11 case was filed against Desert Capital, a Henderson, Nev.-based real estate investment trust. The case number is 11-16624.

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