Developers have until Dec. 8 to bid for a big chunk of land in North Las Vegas that’s being auctioned out of bankruptcy.
November 2005 Land Investors LLC, the twice-bankrupt owner of what’s been planned as the Park Highlands planned community, received bankruptcy court approval last week to sell the 1,340 acres through a bid and auction process.
Bankruptcy Judge Mike Nakagawa approved a sales plan that’s friendlier to the Park Highlands creditors than the initial plan.
Under the first plan, a Park Highlands affiliate would have offered a "stalking horse bid" of $15.2 million.
If that was the successful bid, it would have yielded huge losses for lenders owed $178.9 million.
Under the amended sales plan, there is no stalking horse bid and creditors can still credit bid to obtain the land for themselves should they be dissatisfied with the bids that come in.
Potential bidders need to prequalify by contacting November 2005. Bids will be reviewed by November 2005 and Wilmington Trust, N.A., agent for the lenders in New York.
Whatever happens, lenders and investors in Park Highlands both face losses because the recession has slashed Las Vegas-area land values and there’s little demand by homebuilders for the land compared to the strong demand during the economic boom years.
An affiliate of a Ross Perot Jr. company, Hillwood Communities of Dallas, in December acquired November 2005 Land Investors. Another Perot affiliate had planned to offer the stalking horse bid for the land under that now-canceled plan.
That affiliate is now expected to bid for the property in what November 2005 calls "an open and free auction process."