The owners of Hard Rock Hotel & Casino in Las Vegas filed a lawsuit to prevent lenders from foreclosing on the property and selling it on the courthouse steps in Manhattan on Feb. 7.
Entities created by Hard Rock Hotel Holdings LLC, a joint venture that includes Morgans Group LLC, said in a complaint that the lenders don’t have the right to conduct the foreclosure because they don’t have approval from the Nevada Gaming Commission and their claims of loan default are “non-existent or not material,” according to documents filed today in New York state Supreme Court in Manhattan.
Hard Rock Hotel entities had a 2007 loan agreement for $1.36 billion that was restructured in 2009. In January, a lender told the owners that they had breached covenants and on Jan. 28 sent a notice of its intent to dispose of the borrower’s equity interest in a public sale on Feb. 7, according to the complaint.
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