Firm makes $35 million offer for Lake Las Vegas Ritz Carlton; Village Hotel Investors agrees to case dismissal

By Caroline Salls

Pittsburgh, Dec. 18 - LLV Resort Partners, LLC submitted a $35 million offer to buy the Ritz Carlton Hotel at Lake Las Vegas from Deutsche Bank, according to a letter filed Wednesday under Village Hotel Investors, LLC's case in the U.S. Bankruptcy Court for the District of Nevada.

According to the letter sent to Deutsche Bank AG chief executive officer Josef Ackermann on Dec. 14, LLV Resort Partners made the $35 million offer on Nov. 18 after meeting with Deutsche Bank asset manager Robert Burns on Oct. 28. Deutsche Bank owns a 100% interest in the first deed of trust secured by the Ritz Carlton property through German American Capital Corp., according to LLV Resort Partners' letter.

However, Village Hotel Investors has consented to dismissal of its bankruptcy case or relief from the automatic stay imposed by its bankruptcy filing to allow Deutsche Bank to foreclose on the Ritz Carlton property, according to a separate filing made Wednesday with the bankruptcy court.

LLV Resort Partners said court records show that no offers were made despite four sales being scheduled by the bankruptcy court.

"We want to bring to your attention our frustration in trying to divest Deutsche Bank of a defaulted loan on the Ritz Carlton Hotel at Lake Las Vegas," LLV Resort's managing members said in their letter to Ackermann.

The managing members of LLV Resort Partners include Giovanni Di Stadio, Fred Storch and Robert N. Goldstein.

The LLV Resort managing members said in the letter that their analysis shows that Burns and Deutsche Bank are basing the value of the hotel, which they called a non-performing asset, "on an appraisal that does not accurately or fairly reflect the true operating performance and fair-market value of the property."

According to the managing members' letter, LLV Resort Partners is prepared to enter into a contract to purchase the hotel immediately and close on the sale in 45 to 60 days on an all-cash basis.

Village Hotel Investors is the owner of the Ritz-Carlton Lake Las Vegas. The company filed for bankruptcy on April 1, 2008. Its Chapter 11 case number is 08-13043.

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