Two commercial real estate developments in Southern Nevada have filed for Chapter 11 bankruptcy protection and reorganization to block foreclosures planned by their lenders.
Amid continuing struggles in the local commercial real estate market, the bankruptcies were filed this month by Loraux Enterprises LLC, owner of two retail and professional buildings in Henderson on Valle Verde Drive; and by Las Vegas Russell Road LLC, owner of a light industrial development called Discovery Gateway Park near the Las Vegas Beltway and Russell Road.
Loraux Enterprises in its bankruptcy filing said it was managed by Greta Loraux in Monterey Park, Calif.
The company in its filing didn’t disclose detailed financial information, but said its assets and liabilities each ranged from $1 million to $10 million.
The Oct. 17 bankruptcy filing came one day before a scheduled hearing in Clark County District Court on efforts by U.S. Bank, trustee for holders of Loraux Enterprises’ debt, to have a receiver appointed to supervise Loraux Enterprises’ property.
U.S. Bank had earlier initiated foreclosure proceedings against Loraux Enterprises’ property backing a $3 million loan issued in February 2007.
U.S. Bank claimed in its Sept. 13 receivership lawsuit that Loraux Enterprises had failed to make principal and interest payments on the note since May 11 and that $2.959 million was due.
The property backing the loan is at 34 N. Valle Verde Drive and 40 North Valle Verde Drive, just north of Interstate 215 and near a Kohl’s store.
The Loraux Enterprises buildings there total 9,484 square feet and are occupied by small retail and professional tenants.
Loraux Enterprises didn’t comment in its bankruptcy filing on why it submitted the filing. The company didn’t file a response to the receivership and foreclosure lawsuit, which will likely be put on hold at least temporarily by the bankruptcy.
A request for comment was placed with the company’s bankruptcy attorney on the allegations it had defaulted on its debt.
Separately, Las Vegas Russell Road LLC also filed for Chapter 11 reorganization on Oct. 17 after Bank of America moved to foreclose on its two-building light industrial complex at 8820-8840 W. Russell Road.
The company said its assets were valued at $1 million to $10 million while its debts totaled $100,000 to $500,000.
But in a bankruptcy filing, attorneys for Bank of America said Las Vegas Russell Road was in default on a loan dating to 2007 for $13.118 million.
Las Vegas Russell Road, in its own filing, says its five-acre Discovery Gateway Park consists of two buildings leased to various tenants, one totaling 42,708 square feet with 13 units and the other with 10 units totaling 47,374 square feet.
The company said that just before Bank of America’s planned foreclosure sale on Oct. 18, it sold five of the units in one of the buildings and forwarded the proceeds of $2.1 million to the bank.
Las Vegas Russell Road also said in its bankruptcy filing that from February 2006 through June 2011 it was current on its interest payments, that it had reduced the principal balance due under the loan by more than $6.7 million and that it disputed claims by Bank of America that it was in default.
The case’s bankruptcy judge has not yet ruled on this dispute, but has ordered Las Vegas Russell Road to file a plan of reorganization and a disclosure statement with more financial details by Jan. 18.