Vegas Lucky Dragon Casino Wants Bankruptcy Sale

The Lucky Dragon casino in Las Vegas recently declared bankruptcy. The property located on 300 W. Sahara Ave. never had good luck and may have been doomed from the start. But the developers are hoping to recoup some of their investment through bankruptcy court. According to the Las Vegas Review Journal, they’d like to collect […]

The Lucky Dragon casino in Las Vegas recently declared bankruptcy. The property located on 300 W. Sahara Ave. never had good luck and may have been doomed from the start. But the developers are hoping to recoup some of their investment through bankruptcy court.

According to the Las Vegas Review Journal, they’d like to collect at least $143 million through a bankruptcy sale. However, their lender cautions that it’s not worth half this amount and doesn’t make enough to cover expenses.

What Happened to the Lucky Dragon?

Lucky Dragon started promisingly enough, being billed as the first Vegas casino to be built from the ground up since the 2008/09 recession.

But it quickly experienced a number of troubles, including a slow revenue start, layoffs, and a temporary shutdown of its casino and restaurants.

Potential buyers have shown interest in the property despite these downfalls. But it’s questionable whether anybody would actually pay $143 million for the Lucky Dragon.

Andrew Fonfa, the developer of Lucky Dragon, told the Review Journal that there’s “a lot of interest in the property at this time” from developers.

Snow Covered Capital Claims Lucky Dragon is Worth $60m

The Lucky Dragon lender, Snow Covered Capital, has appraised the casino at just $60 million. When asked why, Fonfa said, “It doesn’t take a genius to figure that out.”

Other creditors include CenturyLink, International Game Technology, accounting firm Ernst & Young, and Clark County (unpaid taxes). Court records show that these companies are all owed money in some way or another from Lucky Dragon.

“Our goal is to be paid for our services,” said CenturyLink’s Mark Molzen. “We have no further comment regarding the Lucky Dragon hotel’s bankruptcy.”

Snow Covered Capital’s court documents state that Lucky Dragon owners “have been offering their assets to the market” for a year and are unable “to find a viable purchaser of the property.” Snow concluded that Lucky Dragon should “consider abandoning the property” instead of potentially racking up more costs on “a failed sale process.”

 

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