Siena Watch – Update

It appears as if the Siena will be put on the auction block. No “binding, acceptable offer[s]” were made to buy the property.

Here is the closing paragraph from the Arent Fox filing:

WHEREFORE, based on the foregoing, the Debtors respectfully request that the Court enter an order: (a) establishing auction procedures with respect to the sale of the Debtors’ real and personal property; (b) approving and authorizing the sale by auction of the Debtors’ real property free and clear of liens, claims, interests, and encumbrances, subject to higher and better offers, (c) approving the assumption and assignment of certain unexpired leases and executory contracts to the winning bidder and establishing the cure amounts, if any, payable under such Assumed Agreements, or, in the alternative, approving the rejection of the Debtors’ unexpired leases and executory contracts to the extent such agreements are not assumed and assigned to the winning bidder, (d) approving that certain addendum to Innovation’s engagement letter dated October 28, 2010; (e) waiving the 14 day stay provided in Rule 6004(h); and (f) granting such other and further relief the Court deems just and proper.

We should also point out that this filing does mention RE Reno:

The Debtors have been in extensive discussions with the Official Committee of Unsecured Creditors for the Debtors (the “Committee”) and with R.E. Reno, LLC (“RE Reno”), One South’s secured creditor. The Debtors submit that the Committee and RE Reno will both consent to the auction sale of the Property and Wild Game’s personal property assets.

The most troubling aspect of the day’s filings turned up on Exhibit B, which “is a list of all of the contracts that may become Assumed Agreements or Rejected Agreements (collectively, the “Unexpired Contracts and Leases”) and the amount of money that the Debtors believe needs to be paid by the Successful Buyer to the counter parties to the Unexpired Contracts and Leases to satisfy the cure requirements of 11 U.S.C. § 365(b).”

The list , including Konami Gaming, Reno-Sparks Convention Authority, Cal-Neva for it’s Sports Book lease and, of course, One South Lake Street. The description of the lease is as follows:

Land Lease and Hotel Casino Lease entered into by and between One South Lake and Wild Game on or about March 6, 2010 pursuant to which One South leases the Property to Wild Game. These lease agreements were subsequently modified by the Modification of Hotel Casino Lease dated April 14, 2000.

The third column on Exhibit B lists a “Cure Amount.” The figure listed for One South?

“Approximately $7,000,000.”

Are we to assume Barney, as the Managing Member of One South Lake Street, will walk away with a $7M payday from the winning bidder?

Links:

Sale doc 190

Sale doc 190 Exhibits

Konami Objection doc 196

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2 thoughts on “Siena Watch – Update

  1. JR, beautiful update on the site. You will find that this platform will allow you keep your readers informed on the Bar-K et al shenanigans with a lot more information than was allowed on Blogger. You are a savant!

    So the Barnster and counsel are trying to milk a $7M exit fee and claiming RE Reno is on board with it? That is bullshit! Hope the BK judge calls him out like he did on the Kelly Law Firm issue. I think Arent Fox is getting dangerously close to getting censured by the Bar for their shoddy and misleading work on this case.

    Any more news on the Chester the Molester case that Researcher alluded to before his untimely demise?

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