NEW BIDDER EMERGES FOR REGENT

June 21, 2001 8:25 PM
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A U.S. Bankruptcy Court has postponed action on the sale of the Regent Las Vegas after a second bidder emerged for the ailing resort in the upscale suburb of Summerlin.

Joining powerful local real estate developer Peccole Nevada, a group calling itself Continental Wellness Casinos bid $160 million.

The bid is being questioned in local news reports in light of sanctions leveled against CWC's operators by the SEC on charges of fraud and violations of securities laws in connection with an abortive 1999 bail-out of a proposed casino project on the Las Vegas Strip.

The company's bid states that the $160 million is secured by a loan from a financial group called Grand American Bank Trust.

In the meantime, the court set a July 3 date to finalize Peccole Nevada's bid for the struggling resort. If that $150 million bid is approved, competitors will have 20 days to top Peccole's offer. If overbids are forthcoming, Peccole, as the "stalking horse" bidder, will have the option to meet and beat those offers.

The 461-room hotel casino filed for Chapter 11 bankruptcy protection in December. The 2-year-old resort, owned by Swiss Casinos of America, owes $300 million to creditors.

Officials for Peccole, a neighboring real estate company, have not indicated how, or if, they intend to divvy up the gaming and hotel operations at the resort.