Walter gets sentenced to 5 years of probation.
Kelly sentenced to 18 months in prison.
Walter gets sentenced to 5 years of probation.
Kelly sentenced to 18 months in prison.
RE Loans filed for bankruptcy. While this was inevitable, no doubt, it’s still a shock to the system. Despite the fact that it’s our money, our lives and our futures, the real bankrupt entity is the Ng Family Dynasty. They’re morally bankrupt. They’re ethically bankrupt. Yet they’re still out there doing business and tricking more suckers like us out of their hard-earned savings.
Maybe Led Zepplin said it best in “When the levee breaks”
If it keeps on rainin’, levee’s goin’ to break,
When The Levee Breaks I’ll have no place to stay.
Mean old levee taught me to weep and moan,
Got what it takes to make a mountain man leave his home
Equitatus posted the following a few minutes ago: Continue reading
The Siena saga is nearly over, but info keeps landing in our laps. Therefore, we present another document with the following reader comment:
3 Page Notice that all claims close 15 April, then 26 pages of creditors. Wouldn’t you love to know how much American Document Destruction is owed, and exactly what their services were? It takes some major cajones to stiff your shredding company.
Click here for the document: Creditors Doc 265
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… Continue reading
We’ve had a lot of action here today. Why not end the day on a positive (unless your name is Barney Ng). An obscure blogger sent the following to us today:
Walter’s letter to RE Reno investors, dated November 11, 2010, states that the sale of the Siena “has not closed as of November 15, 2010.” That’s just the beginning of the absurdity contained within Walter’s letter, found HERE.
Walter states that “it appears likely that the aggregate distribution to R.E. Reno from the sale proceeds will be in the range of $2 million to $2.5 million.” Is Walter so senile as to actually believe that RER will command over half of the sale price when companies like IGT, Konami Gaming and the various city and state agencies are all vying for the proceeds? This is just another case of half-truths and nonsensical blue sky B.S.
Rage faded to disappointment overnight, but returned with a vengeance this morning. The realization (or was it a reminder?) that the valuations provided by the NG family aren’t simply inflated, but greatly exaggerated, hit like a ton of bricks. Weissenborn and his high-priced team have been noticeably quiet. They apparently don’t have time to update us on anything, let alone the great financial loss we sustained yesterday. Arent Fox made money. Stephanie & Matthew Kelly made a few bucks. So did Innovation Capital, to the tune of $300,000 plus consulting fees of $10,000 per month. We, however, lost everything unless, of course, you believe in divine intervention.
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.”
Following up on the September 14th posting entitled “Siena Bankruptcy”, we stated that we were anxiously anticipating the day the Wild Game Ng / Hi-Five and/or Five-Way Development lease would be made public. That day is upon us.
There are two leases that we could find. The original lease from March 6, 2000 and the amended lease from April 14, 2000. Are we to believe that the original lease Barney signed with Barney wasn’t rich enough for Barney in hindsight (6 weeks later)?
It turns out that we were way off on the numbers from the September 14th posting. The monthly rent wasn’t $350,000 per month. It’s actually $553,333.34 and, prior to the Siena BK filing, was scheduled to balloon its way up to $774,666.67 shortly, as the lease hits its tenth year. It was scheduled to escalate to $885,333.34 in its 15th year. Anyway, the latest filing seeks to suspend these $553,333.34 monthly payments from Wild Game Ng to One South Lake, substituting $11,000 monthly payments instead. For those of us who are mathematically challenged, that’s $132,000 a year – a nice income that many of us would be thrilled to have given the state of our investment(s)…but let’s move on, shall we?
Something that initially makes no sense is the fact that the lease is by and between Wild Game Ng and Five-Way Development.
“On or about March 6, 2000, One South (as successor-in-interest to Hi-Five Enterprises, LLC and Five-Way Development) entered into a Land Lease and Hotel Casino Lease pursuant to which it leases the Property to WGN.”
If that’s the case, why is One South Lake the beneficiary? Well, on August 22, 2001, Hi-Five Enterprises Granted, Bargained, or Sold to One South Lake Street – you can find this document on the marvelous Washoe County Recorder’s website.
The BK lease document is full of good information. The following comes from Barney NG’s declaration:
“Pursuant to the Casino Lease, WGN is currently required to pay to One South
monthly rent, without deduction, setoff, prior notice, or demand, equal to an estimated $553,333.34 per month, payable in advance. This rental amount is based upon lease modification documents recently provided to the Debtors by RE Reno, which documents are inconsistent with the Debtors’ internal books and records. The Debtors’ accounting team, under my supervision and direction, is currently verifying this number and reconciling all available documents with the Debtors’ books and records. Since commencing these cases on July 21, 2010 (the “Petition Date,”), however. WGN has not made such rent payments. In connection with WGN’s usage of cash, WGN and One South have been providing R.E. Reno, LLC (“RE Reno”), One South’s secured lender, with periodic operating reports setting forth the Debtors’ net cash flow and operating results, and comparing those results to the Debtors’ operating budget previously tiled with this Court. As demonstrated both by the Debtors’ budget and by its actual operating results during the pendency of these Chapter II cases, WGN is operating on close to a “break even” basis and does not have the ability to make the lease payments called for under the Casino Lease, Furthermore, as of the Petition Date, WGN owed One South as much as $10 million or more pursuant to the Casino Lease on account of unpaid, prepetition rent. (The amount of the prepetition default under the Casino Lease is still being calculated and verified by the Debtors’ accounting staff. under my supervision and direction,). The Debtors commenced these cases primarily to obtain the breathing space afforded by the Bankruptcy Code’s automatic stay while they implement various operating improvements, locate a new operator or transactional partner for The Siena, and develop a plan of reorganization for their business. Those efforts have been ongoing, and 1 have received numerous expressions of interest that I am currently exploring.”
Anyone care to comment? There is plenty of meat in the above paragraph.
Finally, we’ll leave you with the following – does anyone care to comment on the sheer number of affiliated entities and loans and deals zinging back and forth between Walter and Barney (and Barney and Barney)? Who recognizes Gold Mountain Financial Institution? Didn’t the RE Loans Operating Agreement strictly cap the percentage of affiliated loans that could be made?
VIII. FUNDS FOR TENANT IMPROVEMENTS
Landlord shall provide construction funds for tenant improvements to the premises. Such construction funds shall not exceed $35,000,000.00 (less closing costs, attorneys’ fees, the Land Lease Portion defined below and other related costs and expenses) (the “Construction Funds”) which amount, together with $5,000,000.00 borrowed for acquisition of the premises and loan broker fees, Landlord has or shall borrow from Gold Mountain Financial Institution through two loans arranged by Bar K, Inc., a California corporation, evidenced by a promissory note in the amount of $20,000,000.00 dated June 29, 1999 secured by a first position deed of trust recorded against the premises (the “First Loan”) and evidenced by a promissory note in the amount of $20,000,000.00 dated April 17, 2000 secured by a second position deed of trust recorded against the premises (the “Second Loan”) other real property. The lien of such deeds of trust against the premises shall be senior and superior to this Lease. The disbursement of the Construction Funds shall be made in accordance with the requirements of such lender. Tenant shall have the right to approve the use of the Construction Funds. All costs of construction in excess of the Construction Funds shall be the responsibility of Tenant. The term “Hotel & Casino Lease Percentage” shall be deemed to be the percentage determined by dividing the difference between the amount that has been funded under the two loans minus $2,090,000 (which equals that portion of the $40,000,000.00 that is used to pay existing liens against the property that is secured by the deed of trust under the Second Loan that is not secured by the premises) by the amount that has been funded under the two loans. The term “Portion Funded Percentage” shall be 100% less the percentage determined by dividing that portion of the $40,000,000.00 that is not funded for construction by $40,000,000.00.
Sometimes it feels like we’re just “Tri-Ng” too hard in life, doesn’t it? Or maybe we’re not “Tri-Ng” hard enough. The information is out there, but we’ve all been too oblivious, too lazy, or too gosh darn blind to search for the truth. Whatever the truth may be, we’re certain Barney Ng is always Tri-Ng really hard to get ahead.
Tri-Ng, Inc. was operating out of 432 Estudillo Avenue, Room 9, San Leandro, CA 94577. Room 9 just so happens to be the current global headquarters for Five-Way Development, Wild Game Ng and Hi-Five Enterprises. RE Reno’ers following the Siena’s bankruptcy proceedings or reading this blog will recognize the names of these three entities. It isn’t too hard for anyone with a PACER account and some initiative to figure out that Barney NG is the Manager of each of these entities, all headquartered at, you guessed it, 432 Estudillo Avenue, Room 9, San Leandro, CA 94577. This building is 20 miles or so from Bar-K’s building in Lafayette.
Tri-Ng, Inc. Entity Number C1189195, was formed December 27, 1985 by Barney J. Ng. It’s current status is listed as “Merged Out.” What does “Merged Out” mean? We’ll let you know what has become of Tri-Ng if and when possible.
Finally, a quick search of the expensive Alameda County Recorder’s site lists a record showing a tax lien for a company called “Tr Ing Props” that may or may not be Barney’s “Tri-Ng” entity (is it misspelled?):
|TR ING PROPS|
|We love the creativity of the cute names, but, cute names aside, how do all these known and unknown entities affect us MF’08’ers, REL’ers and RE Reno’ers?|