The former Las Vegas Hilton casino resort, now known as LVH, is in line to be acquired by its chief creditor, Goldman Sachs, and a partner. The property has been in receivership since January and faced foreclosure after defaulting on its 2 million mortgage.
Goldman Sachs now intends to pull the gaming hall out of foreclosure in November and then continue operations.
“In many ways this is good news for everyone at the LVH, as it will soon provide more clarity to the future direction of the property,” said LVH spokesman Kurt Ouchida. “It is important to note that the foreclosure sales process takes time, and unfortunately, many assume that a ‘foreclosure’ means that the property is closing its doors. That does not appear to be the case at the LVH.”
In court, investor Colony Capital said Goldman Sachs wants to acquire LVH and then coordinate LVH operations with those of the Las Vegas-based gaming company it owns, American Casino & Entertainment Properties LLC, owner of the Stratosphere and three other gaming properties in Las Vegas and Laughlin.
The partner is Grammercy Capital.
“We believe it is likely that this joint venture will be the successful bidder of the property and, if so, they intend to continue operations at LVH,” said Ouchida, adding that Grammercy and Goldman “have entered into a preliminary agreement with the Navegante Group, a well-known casino management company, which is working closely with state and county regulators to process licensing applications in order to be available as a licensed operator of the property should this be necessary.”
Foreclosure proceedings began in September 2011, but the resort “has continued to conduct business as usual,” Ouchida said. “We will do everything in our power to make the transition of the impending foreclosure sale as smooth as possible.”
Larry Woolf, president of the Navegante Group, is positioned to take the helm at the property by the end of the year. Woolf has run many Las Vegas properties over the last 10 years including the Plaza, the Sahara, Ramparts casino, the Grand Sierra and others.