Liberace Foundation files for bankruptcy
24 October 2012
24 Oct. 2012 6 p.m.
The Liberace Foundation for the Creative and Performing Arts filed for bankruptcy protection Wednesday in Las Vegas as it tries to fend off a lawsuit filed by creditor U.S. Bank.
U.S. Bank has been asking a Clark County District Court judge to appoint a receiver to supervise the Liberace Foundation's property until U.S. Bank completes its foreclosure of that property.
The property at 1775 E. Tropicana Ave. is the site of the Liberace Museum, which closed in 2010 after 31 years of operation.
U.S. Bank, representing investors in the foundation's $1.9 million mortgage, charged in the September lawsuit that the foundation still owes $1.27 million on the loan and that it defaulted by failing to make payments starting in February.
The Foundation has been fighting the lawsuit, with its attorney saying the Foundation never signed for the loan because of its nonprofit status and that the money was actually borrowed by a sister entity called Liberace Plaza LLC, which is also a defendant in the lawsuit.
U.S. Bank, however, says the Foundation guaranteed the loan at issue.
The Liberace Foundation's bankruptcy filing Wednesday listed assets topping $10 million and liabilities of between $1 million and $10 million.
The Foundation said in its filing that its collection of Liberace material has been appraised at about $13 million.
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