Lake at Las Vegas creditor's bankruptcy case dismissal motion denied

By Caroline Salls

Pittsburgh, Oct. 19 - Lake at Las Vegas Joint Venture, LLC creditor Transcontinental Properties, Inc.'s motion for dismissal of Lake Las Vegas' bankruptcy case was denied Friday by the U.S. Bankruptcy Court for the District of Nevada.

As previously reported, Transcontinental said the case should be dismissed because of lack of good faith and because the company has no reasonable likelihood of rehabilitation.

More specifically, the creditor said cause exists to dismiss the case under bankruptcy law because Lake Las Vegas only has one asset and one primary secured creditor, Credit Suisse.

Unsecured creditors hold roughly $15 million of claims against the company, which are dwarfed by the $600 million owed to Credit Suisse, Transcontinental said.

Transcontinental claimed Credit Suisse had effective control over the company's assets and affairs for seven months prior to the filing and could have foreclosed and continued to operate the assets directly.

Lake at Las Vegas Joint Venture LLC, a 3,592-acre master-planned residential and resort community, filed for bankruptcy on July 17, 2008. Its Chapter 11 case number is 08-17814.

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