|By Steve Green, Las Vegas
SunMcClatchy-Tribune Regional News
June 06, 2012--The owner of the Blair House Suites hotel near the Las Vegas Convention Center filed for Chapter 11 bankruptcy reorganization on Tuesday.
The 221-suite property is two blocks west of the Convention Center, at Desert Inn Road and Channel 8 Drive.
Michael Talbott, manager and part owner of the property's parent company, said in a court declaration it was forced to file for bankruptcy to block Clark County from moving against the property with a threatened "Intent to Deed" action on Wednesday. The county is owed about $554,000 for property taxes, he said.
With the Chapter 11 filing, the property can continue to operate as usual while its debt is restructured.
Because of the recession, the Blair House Suites had trouble meeting debt obligations and has defaulted on a mortgage in which $9.5 million is now due, his declaration said.
Nevertheless, the suites are cash flow positive and business has been picking up thanks to improved Las Vegas visitation trends and recent remodeling work, Talbott said.
Through the first five months of the year, income has exceeded operating expenses by more than $150,000, the filing said.
With the bankruptcy filing, the company plans to restructure the mortgage note. That will enable the company, Desert Inn Management Company Ltd., to pay its property taxes "and preserve the value of the debtor," his declaration said.
The initial bankruptcy filing didn't include detailed financial information, but listed estimated assets and liabilities each in the $1 million to $10 million range.
(c)2012 the Las Vegas Sun (Las Vegas, Nev.)
Visit the Las Vegas Sun (Las Vegas, Nev.) at www.lasvegassun.com
Distributed by MCT Information Services