Archives
- Mob Experience developer gets split decision in lawsuit over unpaid bills (10-20-2011)
- Marketing agency sues Las Vegas Mob Experience (10-19-2011)
- Mob Experience developers hit with sanctions (10-17-2011)
- Mob Experience at Tropicana files for bankruptcy (10-17-2011)
- Story of embattled Mob Experience fit for ‘The Sopranos’ (10-17-2011)
- Tropicana sued again over Mob Experience work (10-12-2011)
- Mob Experience faces new lawsuit over unpaid bills (9-28-2011)
- Mob Experience saga grows more bizarre with supposed threat (9-28-2011)
- Struggle escalates for control of Las Vegas Mob Experience (9-23-2011)
The first objection was filed Friday in what’s likely to be a contentious bankruptcy reorganization by the Las Vegas Mob Experience at the Tropicana Resort.
Creditors Vion Operations Inc. and Strategic Funding Source lodged an objection to plans by The Experience to obtain a $375,000 debtor in possession loan from an Experience insider, saying this plan jeopardizes their rights as creditors.
When The Experience filed for Chapter 11 bankruptcy protection and reorganization on Monday, it disclosed plans by an existing Experience investor, John Vipulis, to loan the attraction $375,000 on a short-term basis — and to ultimately buy the attraction for about $2 million.
This sales plan, if approved by the bankruptcy court, would lead to steep losses by creditors as The Experience’s liabilities top $10 million.
Vion and Strategic are factoring companies that purchased $4 million in future Experience receivables for $3.1 million.
With The Experience unable to pay back the $3.1 million — much less the full $4 million — because of its financial problems, Vion and Strategic complained during a hearing Thursday that The Experience’s bankruptcy reorganization plan calls for them to receive just $50,000.
In Friday’s objection, attorneys for Vion and Strategic said the debtor in possession loan request was filed prematurely and must be denied by Bankruptcy Judge Bruce Markell during a hearing set for Monday.
They said that until the extent of The Experience’s cash collateral is defined by the court, The Experience is unable to pledge its cash as security for the proposed loan.
Cash collateral is cash to which creditors have claims against.
Attorneys for Vion and Strategic also complained the proposed Vipulis loan has "onerous terms and substantial fees’’ and that The Experience hasn’t shown it sought other financing arrangements on more favorable terms.
Vion and Strategic said in their filing that they are senior lienholders that obtained "perfected first priority security interests in all of the debtor’s personal property.’’
As part of the court’s determination of The Experience’s cash collateral, it will have to determine the validity, priority or extent of liens and other interests in the cash collateral, Vion and Strategic said in their filing.
Attorneys for The Experience are expected to address the objection during Monday’s hearing on ``first day’’ bankruptcy motions, including routine motions allowing The Experience to continue paying its employees.