Las Vegas Monorail bondholders eye statement consideration deferral

By Caroline Salls

Pittsburgh, June 3 - Las Vegas Monorail Co. majority series 2000 first-tier revenue bondholders and first-tier bond indenture trustee objected to the company's proposed disclosure statement, arguing that Las Vegas Monorail's plan of reorganization was filed over the opposition of the bondholders and trustee despite ongoing negotiations.

According to the objection filed Thursday with the U.S. Bankruptcy Court for the District of Nevada, the company filed an amended plan on April 27 with less than a day's notice to the bondholders while plan negotiations were still ongoing.

"During the five weeks since April 27, the majority first-tier bondholders have engaged in intense continued negotiations with the debtor and have made significant further progress - making it all the more puzzling that the debtor now insists on moving forward with a hearing on the disclosure statement for its now five-week-old plan," the bondholders said in the objection.

In addition, the bondholders said Las Vegas Monorail knows the April 27 plan is not acceptable to the first-tier bondholders and includes terms that have been superseded by recent negotiations.

The bondholders said the company has refused to adjourn the June 8 disclosure statement hearing "to permit a short time for further negotiations."

As a result, the bondholders are asking the court to defer its consideration of the disclosure statement.

The company, a Las Vegas non-profit monorail operator, filed for bankruptcy on Jan. 13, 2010. The Chapter 11 case number is 10-10464.

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