Larry Ellison Buys Cal Neva Resort Casino for $35.8m

Once owned by Frank Sinatra, the Cal Neva Resort used to be a legendary hot spot for celebrities. The casino resort has since fallen on hard times. But Oracle founder Larry Ellison apparently sees some value in Cal Neva, because he’s purchased it for $35.8 million. According to Mecury News, the deal was near completion […]

Once owned by Frank Sinatra, the Cal Neva Resort used to be a legendary hot spot for celebrities. The casino resort has since fallen on hard times.

But Oracle founder Larry Ellison apparently sees some value in Cal Neva, because he’s purchased it for $35.8 million.

According to Mecury News, the deal was near completion in October. But Ellison was ready to walk away when the deal was held up in bankruptcy court.

The problem was that previous creditors wanted to recoup some of their losses, including a $49 million renovation loan on the complex in 2013.

Despite the holdup, Ellison stuck around and still purchased the property, which lies on the California and Nevada borders.

No Big Price for Ellison

To most people, $35.8 million would be a massive fortune. But this is a drop in the bucket for Ellison, given that he’s worth $61.2 billion.

This isn’t Ellison’s first major property purchase. Back in 2012, he bought almost all of the land on Hawaii’s Lanai Island for $300 million.

What’s Next for Cal Neva Resort?

Criswell Radovan, who took out the $49 million loan for Cal Neva, renovated all 220 guest rooms, the casino floor, and the restaurant before filing for bankruptcy in 2016.

The creditors who loaned Radovan the money were seeking ways to recoup the $49 million disaster investment. Ellison was the only buyer, and they leveled a lawsuit to recoup the money.

The lawsuit held up the sale. But the court, creditors, and Ellison were finally able to come up with a solution. Now, $27 million of Ellison’s purchase price will go towards the creditors.

Ellison hasn’t given any hints on exactly what he’s going to do with Cal Neva. Furthermore, he doesn’t currently own any casinos. But it does make sense that he purchased the property when considering that he’s building a mansion on Lake Tahoe.

 

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