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On January 2, 2008, The Atalon Group acquired full ownership and operating control of Lake Las Vegas, a 3,600 acre master planned community encumbered by over $1 billion in secured and un-secured claims. The operations included 365 employees, 25 legal entities (including three championship golf courses, a high-end resort hotel, and various other businesses), and over 120 vacant parcels that can accommodate up to 7,000 residential units. In July 2010, Atalon successfully resolved an extremely contentious judicial reorganization of the project and emerged from chapter 11 bankruptcy.
Atalon assumed ownership and full control from a hostile ownership group that controlled the project for over 20 years.
While taking over control and operating the project and in just 4 months, Atalon formulated a new business plan, prepared a financing package, and presented the financial proposal to prospective lenders. Atalon closed a fully funded $127 million DIP facility just two months before the Lehman collapse.
Prior to the chapter 11 filing, Atalon closed operations, reduced overhead & staff, disposed of assets, recovered receivables and re-negotiated agreements that resulted in annual cost savings in excess of $15 million.
During the bankruptcy process and prior to filing of the reorganization plan, Atalon negotiated significant monetary settlements that reduced claims and litigation exposure by over $20 million.
Successfully confirmed a heavily negotiated plan of reorganization resolving approximately $800 million in secured debt and $200 million in unsecured claims.