Lake Las Vegas and its creditors committee reach consensual DIP agreement; hearing to continue Tuesday

By Jennifer Lanning Drey

Portland, Ore., Aug. 4 - Lake at Las Vegas Joint Venture, LLC presented the U.S. Bankruptcy Court for the District of Nevada with the terms of a consensual agreement on Monday that resolves prior objections to its proposed debtor-in-possession financing, according to a source familiar with the case.

The agreement is between the company, its creditors committee and various other individual creditors that had previously objected to Lake Las Vegas' proposed $127 million financing from a group of lenders led by Credit Suisse as agent.

The committee previously said the budget included in the DIP motion was vague and appeared heavily weighted toward funding administrative expenses.

Additionally, they said the budget created a disparity in the amount allocated to various professional groups.

A hearing on the amended DIP agreement began late Monday and was scheduled to continue Tuesday.

Lake Las Vegas Resort is a 3,592-acre master-planned residential and resort community adjacent to Lake Mead National Recreational Area and 20 miles east of the center of Las Vegas. The joint venture's Chapter 11 case number is 08-17814.

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