Like the Yellowstone Club and a number of other major resort projects around the country, Lake Las Vegas in Nevada took a giant loan from a Credit Suisse-led lender group, allowed the owners to pocket the bulk of the proceeds, and then abruptly fell into bankruptcy when the real estate meltdown hit. Now, following in the footsteps of the Yellowstone Club creditors successful lawsuit against Credit Suisse, the creditors committee in the Lake Las Vegas bankruptcy has filed a suit against the banking giant, seeking to have some $545 million in loan proceeds invalidated as a “fraudulent transfer” and returned to the company to satisfy creditors.The owners of Lake Las Vegas, primarily developer Ron Boeddeker and Texas investors Sid and Lee Bass, took some $685 million in loans from Credit Suisse in 2004 and 2005, according to the complaint, and pocketed $470 million in cash as a return on equity, with Credit Suisse earning about $13 million in fees. The development, a 3,500 acre Mediterranean-themed community with an artificial lake and three golf courses about 20 miles outside of Las Vegas, filed for bankruptcy protection in July of 2008.
By Jonathan Weber, July 31, 2009 Newwest.net
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Lake Las Vegas, July 31, 09 Newwest.net