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Canyon Capital Realty Advisors Completes Foreclosure on the Greek Isles
Hotel and Casino in Las Vegas; Intends to Keep the Property Open
While Assessing its Future
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LAS VEGAS, NV (August 19, 2009) — Affiliates of Canyon Capital Realty Advisors (“Canyon”) and Spectrum Group Management LLC (“Spectrum”) have completed the foreclosure process on the Greek Isles Hotel and Casino located just off the Strip in Las Vegas, and immediately announced their intent to keep the property open for business while assessing the hotel and casino’s future. 
 
In July 2007, Canyon and Spectrum provided a $56 million loan to the borrower for the $83 million purchase of the property, formerly known as the Debbie Reynolds Hotel and Casino.  The borrower had originally planned to sell or redevelop the property, but due to constraints in the capital markets, was unable to raise the necessary funds to undertake the development.   At its peak, the property was appraised at $120 million. The borrower defaulted on the loan, and Canyon and Spectrum filed for foreclosure in December of 2008.The foreclosure process was completed on Monday, August 10.

Greek Isles Hotel and Casino
305 Convention Center Drive, 
Las Vegas, Nevada

Jackie Gaughan opened the Royal Inn Casino in 1972. It operated as the Paddlewheel for several years, then in 1993 Debbie Reynolds acquired the property. In 1999 the hotel was sold to the World Wrestling Federation. The WWF sold it to Mark IV Realty Group in 2000. Mark IV partnered with Delta Airlines and United Airlines to turn it into a crew hotel in 2001.

“We are now focused on assessing the property, and developing a plan to move forward,” said Canyon Senior Director Richard Bosworth. “We want to make it clear that ownership is committed to keeping the Greek Isles Hotel and Casino open for business as we determine the next steps for the property.”  
 
Peter Locke, a Principal at Spectrum added, “Although the current environment in Las Vegas is challenging, the property’s exceptional location, as evidenced by its proximity to the proposed Convention Center expansion and recent hotel/casino developments on the north-end of the Strip, should provide the new owners with significant upside potential through a redevelopment or repositioning of the hotel as the market recovers.”
 
The 202-room Greek Isles is uniquely situated within walking distance of both the Las Vegas Convention Center and the famous Las Vegas Strip. The resort caters to both business and leisure guests.  The hotel features banquet and meeting space, a casino, an outdoor pool/spa, a wedding chapel, 24-hour bar and lounge, as well as a fitness room. The property also boasts a Broadway-quality 450-seat showroom and two smaller theaters with nightly shows and a Karaoke lounge.
 
Both Canyon and Spectrum are highly-experienced investors in the hotel and casino industries, with successful investments in markets throughout the country, including Nevada.  The firms will draw on their deep relationships and experience in the hospitality industry to develop a game plan that will maximize the value of Greek Isles.
 
About Canyon Capital Realty Advisors LLC
Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Los Angeles, Calif., with more than $15 billion of capital under management.  Canyon’s real estate activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints.  The CCRA team has completed over 226 real estate and mortgage transactions totaling more than $3.6 billion of invested capital, including the origination of senior, mezzanine and bridge loans, note acquisitions, recapitalization of partnerships, and the acquisition of over 12 million square feet of real estate.  These investments encompass a diverse mix of real estate property types including retail, entertainment, multi-family, industrial, office, hospitality, land, mobile home and mixed-use and mortgage loans secured by such property types. 
 
About Spectrum Group Management  LLC
Spectrum Group Management LLC is a multi-strategy asset management firm focused on distressed credit markets, secured lending and special situations.  Spectrum’s investment strategy enables it to invest both long and short and is dedicated to preserving and growing capital by investing in opportunistic tranches of the capital structure of tangible assets and companies.  Spectrum was founded in 1999 and is headquartered in New York City.  

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Contact:

Steve Sugerman 
310-689-7535

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Also See: Greek Isles Hotel & Casino, the Former Debbie Reynolds Hotel, Enters Chapter 11; Defaults on a $56 million Loan / April 2009
The Former Debbie Reynolds Hotel In Las Vegas Set for Implosion; Replacement Plans Include Two New Towers with 780 Hotel Rooms / January 2008
Moshe Mor Leads Investment Group Acquiring the Greek Isles Hotel and Casino for $52 million; Wants to Demolish former Debbie Reynolds Hotel and Build 600-unit Condo Project and a 1,000-room Hotel/Casino / February 2005
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