On May 14, 2009 Barney Ng wrote the following to RE Reno investors:
Barney’s commitment to paying off the loan should be lauded. His follow-through, however, is laughable (so is yours, Walter – you, too, signed the personal guarantee). Barney continues…
In addition, the Hotel was sold faulty and untested slot machines by International Gaming Technology (“IGT”), a major slot machine manufacturer. The introduction of these games into the casino floor has similarly negatively impacted the Casino’s operations. We have been litigating against IGT for over four years. The matter finally proceeded to trial in August of 2007. During trial a witness for IGT testified that the Siena was damaged in the sum of $160,000,000 dollars. However, before the case was allowed to go to the jury for deliberation, the judge inexplicably dismissed the jury and summarily decided the case in favor of IGT. Upon motion for retrial, the judge admitted that he abused his discretion in deciding the case against us and granted our motion for a new trial. However, IGT has appealed this order and we are now proceeding to the Nevada Supreme Court to argue the appeal.
As a result of the persistent problems associated with the faulty equipment, the Siena has been materially disadvantaged since its opening and has never been able to operate as a fully functioning Casino. The net effect of this is that the Siena has never been able to generate the projected profits necessary to debt-service the loan made to it by R.E. Reno, LLC. This is why I have been personally making the interest payments on the One South Lake Street Loan. We are confident in our case against IGT and should there be a successful outcome, whether by winning at trial or through settlement, it is my intent to use the funds obtained from one of these outcomes to pay down or payoff the One South Lake Street Loan.
This is all well and fine, but then we received THIS DOCUMENT today.
It’s all over RE Reno folks. There really is no money coming. Ever.