In mid-May, a Bankruptcy Court judge approved bid procedures for the bankrupt Lucky Dragon in Las Vegas, clearing the way for a potential sale of the off-Strip resort.
Speaking to local media, the property’s developer Andrew Fonfa stated that he had recently returned from Beijing, which “gives you an idea of some of the investment groups I’ve been talking to”. Fonfa added that he expects to have selected a group “to move forward with” by the end of June.
In its court papers in April, Fonfa’s group stated that the bankruptcy case was “a straight forward hotel and casino sale” which aimed to pay its largest creditor in full and preserve jobs.
Innovation Capital founding partner Matt Sodl, the Lucky Dragon’s financial advisor, stated that he is “seeing good interest” in the property from groups in Asia and the US.
Qualified bidders would need to submit a $2.5m deposit and prove that they can provide a “sufficient” management team and business plan.
According to the developers, the bankrupt resort is worth $143m, how- ever their lender Snow Covered Capital valued the property at $60m.
In a court filing on 30 April, Snow Covered Capital stated that the developers “have been offering their assets to the market” for about a year but apparently are unable “to find a viable purchaser of the property.”