Tag Archives: bankruptcies

It’s not easy being Mr. Las Vegas

Entertainer Wayne Newton’s money woes and legal skirmishes are continuing at warp speed. 

Newton has had a long history of financial problems.  Newton famously declared Chapter 11 bankruptcy after becoming mired in roughly $20 million in debt about 18 years ago and the IRS said in 2005 that Newton owed $1.8 million in back taxes and penalties. 

Then, earlier this month it was learned that Newton abandoned his plane at the Oakland County International Airport three years ago and now owes more than $60,000 in storage fees and now faces lawsuits. 

Also this month, a civil lawsuit was filed in Clark County District Court by Bruton Smith, chairman and founder of Speedway Motorsports Inc. Smith is seeking to seize Newton’s home for repayment of a $3.35 million loan. 

Smith alleges Newton and his wife intentionally defrauded him and misrepresented their ability to repay the loan. 

A lawsuit was also filed last summer for nonpayment of $32,000 worth of hay for his horses. 

To top that off (if that’s possible), yesterday a large posse of Clark County sheriff’s process servers and moving vans showed up in the morning at Newton’s 38-acre ranch at Pecos and Sunset roads in Las Vegas, trying to serve the entertainer with judgment documents and take his property pertaining to a civil lawsuit brought by his former pilot, Monty Ward.  

Clark County District Judge Michelle Leavitt in September ordered Newton to pay Ward about $455,000 in back wages with interest accruing at the rate of roughly $129 per day. Court records show Newton paid less than $4,000 to Ward as of September. 

A similar action by Ward is simultaneously being pursued in U.S. District Court. 

Ward filed a federal breach-of-contract lawsuit in 2006 against Newton and a Nevada company called Desert Eagle. 

According to the lawsuit, the defendants asked Ward around February 2003 to work as their private pilot for the next decade. He was to start at a minimum annual salary of $92,000, plus medical and dental benefits, according to the complaint. 

“In reliance on assurances of continued employment and payment from defendants for a minimum of 10 years, Ward left his employment of 16 years as a captain and pilot with Horizon Airlines and became defendants’ private pilot,” the lawsuit alleges. 

Then, around August 2005, according to the document, Newton and Desert Eagle decided to discontinue using their private aircraft. The lawsuit claims Ward sent the defendants invoices for his services and benefits for periods after they decided to discontinue using their private aircraft, but despite repeated demands, they refused to pay him. 

In January 2009, then-U.S. District Judge Brian Sandoval ruled that Newton and Desert Eagle had breached a settlement agreement they had reached with Ward, and Sandoval entered a judgment of about $455,000 against the defendants.

Late last month, a writ of execution was issued in the case by the U.S. District Court clerk. The writ directed the U.S. Marshals Service to enforce the judgment, which, with interest, has grown to more than $500,000. 

This Tuesday, Ward filed a notice of his intention to take Newton’s deposition on March 4 in Las Vegas.

Yesterday, deputies left Newton’s compound without being able to properly serve him  The documents were returned to District Court marked “unexecuted,” and no further service will be attempted pending civil court actions, police said. 

The Wayne Newton saga is hardly over.   If anything, it will be rapidly ramping up in the next few months.  Please stay tuned to Las Vegas Backstage Access for developments.

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Station Casinos in Nevada Files for Bankruptcy; Boyd Gaming in Pursuit

Station Casinos in Nevada filed for Chapter 11 bankruptcy protection after reaching an impasse in months-long negotiations with creditors on a plan to restructure the gaming company’s $6.5 billion debt. 

The bankruptcy case, which includes parent company Station Casinos Inc. and 17 of its noncasino affiliates, was filed in U.S. Bankruptcy Court in Reno, Nevada.  The noncasino subsidiaries control the company’s landholdings in Reno and other nongaming assets. 

The company’s 18 casino properties and their affiliates were not included in the filing, and company executives stress that those properties will continue to operate like they do today.

 As this is going on, Boyd Gaming Corp. remains “actively engaged” in discussions to acquire some of the assets of Stations Casinos. 

Boyd in February offered to acquire several of Station Casinos’ properties for $950 million, but Station Casinos summarily rejected the offer, though it was a major focus of their earnings call.

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Fountainebleau Mixed-Use Project Goes Belly Up in Las Vegas

Ending weeks of speculation, the Fountainbleau project in Las Vegas and two of its affiliates filed for Chapter 11 bankruptcy protection in Florida on Tuesday.  

The $3.1 billion mixed-use project that’s 70 percent complete, owned by Miami-based Fountainbleau Resorts, listed more than $1 billion in assets against more then $1 billion in estimated liabilities. 

The filing noted that the developer has between 1,000 and 5,000 creditors. 

Fountainbleau Las Vegas was designed as a 3,815 room hotel-condo-casino project with a large retail center, restaurants, spa and other amenities.

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Onex to take Control of Tropicana in Las Vegas

Onex Corporation has acquired some of Tropicana Entertainment LLC’s debt at a discounted rate, which will give the private equity firm control of the company’s prized Las Vegas Strip property after it emerges from bankruptcy. Tropicana

Tropicana’s reorganization plan, which was approved by a Delaware bankruptcy court earlier this month, eliminates more than $2.4 billion in debt and more than $125 million in annual interest payments from the books. 

Onex leveraged Tropicana’s depressed economic condition and bought more than $200 million of the privately held company’s $440 million term loan, which is secured by the 51-year-old Tropicana Resort & Casino. Toronto-based Onex will pay for the debt with a credit agreement specifically set up for the purchases, according to a recent securities filing.

Onex partner and former MGM Mirage President Alex Yemenidjian will become chief executive of the Las Vegas casino under terms of Tropicana’s restructuring plan. 

Tropicana Resort & Casino rests on 34 acres in Las Vegas and includes more than 1,850 hotel rooms, a casino of about 61,000 square feet, five restaurants and an 850-seat showroom. 

Tropicana Entertainment’s reorganization also includes an exit financing commitment from Icahn Capital, a company owned by billionaire investor Carl Icahn.  Icahn has been interested in the company’s Atlantic City, N.J., casino, which will be sold in a bankruptcy court auction.

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