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Creditor: Hooters Las Vegas hoarding cash

Sept. 21, 2011 at 3:24 PM   |   Comments

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LAS VEGAS, Sept. 21 (UPI) -- A major creditor of Hooters Las Vegas casino said the resort is hoarding cash that could be used to pay many of the 300 claims against it.

In a court filing, Canpartners Realty Holding Co. IV LLC said the resort's reorganization plan is doomed to fail, the Las Vegas Sun reported Wednesday.

In part, the plan is doomed because the company's claim to fame, waitresses in short shorts and tight tops, is not unique to Las Vegas.

The resort said in a recent filing with the U.S. Bankruptcy Court for Nevada, that it lost $40,000 in August on revenue of $3.6 million.

Canpartners, in its filing, said the resort is holding onto $9.9 million in cash, at least $1.7 million of which would be better served paying off creditors than helping a resort that is floundering and looking for a buyer.

"Equity dictates that debtors should not be permitted to maintain this outsized war chest while the holders of the non-Canpartners claims are trapped as pawns in these cases without payment," the court filing said.

Hooters contends Canpartners is being predatory, having bought $127.5 million of the debt for 22 cents on the dollar, the newspaper said.

© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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