Siena Watch – UPDATE

Per the RGJ’s Ray Hagar this morning:

The auction of the Siena Hotel Casino in downtown Reno will take place next week in a Reno courtroom, where a national investment banking firm will try to sell the downtown resort that recently closed after a long string of financial problems.

“The reality is that the Siena has ceased operations and we are going to sell this in a bulk sale in one transaction to a singular buyer,” said Matt Sodl, managing director of Innovation Capital LLC in Los Angeles. “It will be a turn-key operation for that buyer and that buyer can either run it as it were, with the hotel and casino, or the buyer can decided if they want to operate a casino there or not.”

Those interested in participating the Nov. 10 auction are asked by Monday noon to submit a $250,000 deposit by wire transfer, evidence of financial wherewithal, a signed non-collusion affidavit and a mark-up of the Debtors’ form purchase agreement.

One-on-one tours of the property will be held on Tuesday with the auction Wednesday in the U.S. Bankruptcy Court of Judge Gregg Zive.

“We have marketed this thing far and wide and have a lot of interest in this asset,” Sodl said. “We have had a lot of interest from in-market competitors to buyers who are looking to get involved in the Reno market.”

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13 thoughts on “Siena Watch – UPDATE

  1. So tomorrow is the auction. I’m a bit of an insider and have been following the activity closely. There was only one party who conducted a thorough due diligence inspection of the Siena as far as I can tell (I read vanity plates and the contractor signs on the F-150s in the parking lot). I think the opening bid will be $1. And I have no indication that there is a back up bidder. I don’t think that RE Reno or Loans has the deep pockets anymore to enter the fray. Meaning you investors will be wiped out 100%.

  2. How do the “personal guarantees” of Barney and Walter on the Siena investment come into play . . . once we can demonstrate our financial loss in Siena, can we pursue them?

  3. Kelly Ng has stated that the guarantees, there are two of them, are nothing more than “feel good” documents. I believe them to be illegal worthless instruments used to entice investors into a investment fund that was doomed from the beginning and about which we were provided no truthful information. (i.e. Barney’s almost $600k per month rent to himself.)

    Granted, One South Lake made interest payments for a few years but even Barney admits that the Siena never turned a profit.

    Written legal demands to Walter, et al, for payment of past due interest and return of investment principal based upon the guarantees have been ignored.

    Barney and Walter both signed the guarantees and it’s Barney’s fault that the Siena went belly up and that we’ve lost our investments. But it’s Walter (RE Reno) who owes us our money and it was Walter who failed to abide by our contract with RE Loans and foreclose on the Siena when he should have and who didn’t follow through with the foreclosure as he is required by contract to do.

    The Siena is now worthless, our $50 million is gone, and few of us have the financial means left to pursue the matter in court. We’d need legal indictments and convictions for fraud, etc. by some DA’s office first and then we could possibly make attempts to recover at least a portion of our investments.

    Remember, the Ng’s have made a career of lawsuits and it’s our money they use to pay their very expensive lawyers.

  4. Siena property sells at
    auction for $3.9 million

    Staff Report • Reno Gazette-Jouranal • November
    10, 2010

    The Siena was sold today at auction for $3.9 million
    to Grand Siena, LLC, represented by David Colvin.

    Bidding started this afternoon with an opening bid
    of $3 million. There were two other bids on the
    property.

    Stay with RGJ.com for more details as they become
    available.

  5. Just checked the balance sheet from a year ago.
    Ng’s claimed Siena was worth 50,000,000. The balance
    on the loan held by RE Loans was 21,409,300.
    How much are all the other creditors claims?

  6. There are over 400 pages of creditor claims, not to mention attorney’s fees. Cross the Siena off the list. $79 million down the drain. We shouldn’t be surprised. We should be outraged.

  7. I was there at the auction. Here are my quick thoughts:

    Siena Hotel Spa Casino was sold at an auction at US Bankruptcy court for $3.9M. This figure is “free and clear”, and the court will determine the distribution of the proceeds at a later date. The court did authorize that the outstanding liens for property tax, sewer fees, gaming fees, and RSCVA be paid from the proceeds immediately to allow the transaction to close within 48 hours. This will leave about $3.5M to be split among the creditors. It looks like RE Reno LLC who own the $50M will get nothing in the end.

    There were 3 bidders: Northern Nevada Asset Holdings (new owners of Silver Club in Sparks), Stratus West LLC (a division of Stratus Gaming?), and the winning bidder Grand Siena LLC. This entity is controlled by David Colvin from Las Vegas, who is also the principal behind Gaming Arts (www.gamingarts.com). There are reported to be 5 investors total. One, Jay Meilstrup of Reno, is president of http://www.gametech-inc.com/

  8. “The balance on the loan held by RE Loans was 21,409,300.”

    Was the balance of the loan held by RE Reno, approx. $29 million, also listed?

  9. http://www.mynews4.com/story.php?id=31720

    Siena casino hotel in Reno sells at auction
    Wednesday November 10, 2010 2:40pm PST

    The Siena Hotel Spa Casino was sold at auction in Reno today for $3.9 million.

    A firm called Grand Siena bought the property, and the new owner told KRNV News 4 that they would like to open as soon as possible.

    The lawyer representing the former owners says the proceeds from the today’s sale will be divided between the Siena’s creditors, who are collectively owed $60 million.

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