Lake at Las Vegas Joint Venture disclosure statement approved

By Caroline Salls

Pittsburgh, March 31 - Lake at Las Vegas Joint Venture, LLC's disclosure statement was approved Tuesday by the U.S. Bankruptcy Court for the District of Nevada.

The plan confirmation hearing is scheduled for June 21.

Treatment of creditors will include:

• Holders of pre-bankruptcy lender claims will receive 1% of the equity of the reorganized company and warrants to purchase up to 25% of the equity to be triggered as the recovery to debtor-in-possession lenders exceeds specified benchmarks. These creditors will also receive 80% of net litigation claim proceeds;

• Holders of DIP lender claims will receive a share of 94% of the membership interests in reorganized LLV Holdco;

• Holders of mechanics lien claims will receive either a secured note to be paid over three years or the collateral securing the claim; and

• Holders of general unsecured claims will receive a share of $1 million in cash and up to 10% of net litigation claim proceeds.

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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