Lake at Las Vegas eyes DIP loan forbearance to negotiate plan terms

By Caroline Salls

Pittsburgh, July 29 - Lake at Las Vegas Joint Venture, LLC requested court approval to enter into a forbearance agreement related to the impending maturity of its debtor-in-possession facility and the company's failure to meet milestones set in the DIP loan agreement, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Nevada.

Specifically, the company said the DIP facility is scheduled to mature on Aug. 7, and it is required to meet some milestones by that date.

The forbearance agreement would expire on Aug. 21 and would give Lake at Las Vegas more time to negotiate the terms of a plan of reorganization, the motion said.

If there is enough progress by the end of the requested forbearance period, the company said it expects the forbearance period to be extended to at least Aug. 31.

Lake at Las Vegas has asked the court to schedule an Aug. 7 hearing on approval of the forbearance agreement.

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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