Office building
Mesquite casino manager and pitchman Robert ''Randy'' Black Sr. is heading back to bankruptcy court — this time apparently over problems related to a Las Vegas office building.
Black and his wife, Kathy, voluntarily filed for Chapter 7 bankruptcy protection on Wednesday. Despite the U.S. Bankruptcy Court for Nevada being closed for the holiday, the Blacks were able to file their petition electronically.
The filing came one day after a federal judge in Las Vegas rejected a request by the Blacks that Bank of America be blocked from issuing subpoenas to tenants of an office building that Black developed in Las Vegas.
Attorneys for the bank say they issued the subpoenas because the bank needs lease information from the tenants to help determine the fair market value of the building, which the bank is trying to foreclose on.
The Blacks are fighting the foreclosure, saying it was tainted by irregularities on the part of the bank, and a state court lawsuit over the foreclosure is awaiting resolution by the Nevada Supreme Court. B of A has denied wrongdoing in its foreclosure.
The Blacks are separately fighting a federal lawsuit filed by the bank seeking to enforce personal guarantees the Blacks made to back a loan issued in 2005 for development of the building. Bank of America says that as of February, the loan balance was $14.6 million.
The 70,000-square-foot, Class A office building is owned by a Black company called Town Center Drive and 215 LLC. It’s at 10777 W. Twain Ave., in the Summerlin area near Town Center Drive and the Las Vegas Beltway.
The building formerly housed the headquarters of Black’s casino company, Black Gaming.
Black Gaming had been paying $11,508 per month for office space there.
That arrangement ended with the bankruptcy of Black Gaming on March 2, 2010.
Black Gaming said at that time that in order to save money it had moved its corporate offices from the Summerlin-area location to the CasaBlanca resort in Mesquite, about 80 miles north of Las Vegas.
Black Gaming had three hotel-casinos: CasaBlanca, the Virgin River and the Oasis. The Oasis was shut down beginning in 2008 amid a lack of demand tied to the recession.
As Black Gaming emerged from bankruptcy, investors including Anthony Toti, Newport Global Advisors LP of Woodlands, Texas, and South Point hotel-casino owner Michael Gaughan pumped money into the company. Randy Black Sr. received a minority ownership stake and a management position as chief operations officer in Black Gaming’s successor company, Mesquite Gaming LLC.
He's known for appearing in advertising including ads with the themes "It's Mesquite" and "Always bet on Black."
Randy Black Sr.’s personal bankruptcy filing Wednesday didn’t include detailed financial information — that will have to be filed later under bankruptcy law.
It did say he and his wife have assets valued at $50,000 or less while their liabilities are estimated to range from $10 million to $50 million. Most of the debts are business-related, the filing says.
Besides the Bank of America litigation over the office building, the Blacks face lawsuits filed this year by City National Bank and Bank of Nevada. Both banks claim the Blacks have defaulted on business loans — both for $2 million and issued in April and December 2007.
A request for comment on the bankruptcy was placed with Black’s attorney.