I should get an award for sitting through the three-hour-long bankruptcy hearing yesterday for Reno City Center, but it was worth it.
I’m just going to do a high level overview, because there was a lot of legal-speak that flew over my head.
Essentially, the major piece is that the judge approved a settlement agreement between Delphi, a lender, and the debtor, Reno City Center LLC, which I assume is Reno City Center or one of its legal entities/LLC’s above it or Gryphon.
The settlement is for $47,500,000, a much smaller number than what was originally owed. There is a payment due October 15, $10,000,000, which would be supplied with an equity infusion, and then the remaining $37,500,000 due in December.
There is a separate case of wire transfer fraud against Chris Beavor/Bristlecone Management, and this settlement transfers the rights to pursue that and expenses of pursuing that case over to Delphi from the debtor, freeing up resources for the debtor to pursue new financing options for the $37,500,000 payment, AND to work to complete the project.
The attorney for the debtor, Elizabeth Fletcher, mentioned many of the sub-contractors who are owed money still would like to come back to the project and finish it. She mentioned if all their ducks are in a row, construction ‘could’ resume in January. That’s their goal. It’s all a very tight timeline.
Attorney Fletcher mentioned the debtor is talking with 4 or 5 potential lenders, and that this settlement makes it easier to pursue money to complete the project.
The attorney for Bristlecone Management/Chris Beavor objected to the settlement, stating the assets would be better off being auctioned off, however the judge disagreed and mentioned this settlement is the best thing for both parties and the creditors.