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Lake Las Vegas granted court approval for $127 million DIP
By Jennifer Lanning Drey
Portland, Ore., Aug. 5 - Lake at Las Vegas Joint Venture, LLC was granted court approval to obtain $127 million of debtor-in-possession financing from a group of lenders led by Credit Suisse as agent, according to a company news release.
The approval came late Monday from the U.S. Bankruptcy Court for the District of Nevada, following Lake Las Vegas' presentation of a consensual agreement with its official committee of unsecured creditors resolving prior objections.
According to a source familiar with the case, the consensual agreement primarily addresses the treatment of $48 million of pre-petition advances and deadlines for milestones, which have been extended, and the budget included in the DIP.
"We are gratified by the court's decision today and particularly appreciative of the work of the creditor committee, individual creditors, lenders and their representatives in diligently working together to craft an agreement," Frederick Chin, president and chief executive officer of Lake Las Vegas, said in the release.
Lake Las Vegas said previously that the new financing would be used in part to fund ongoing operations and assessments related to pre-bankruptcy obligations, including critical repairs to the Las Vegas Wash bypass conduit underlying the 320-acre man-made lake at the center of the 3,600 acre master-planned community.
As previously reported, the facility will bear payment-in-kind interest at 2%, plus interest at Libor plus 750 basis points.
The DIP loan will mature on the earliest of one year after the bankruptcy filing date and on the effective date of a plan of reorganization.
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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