Case Background

On February 16, 2018, Lucky Dragon Hotel & Casino, LLC filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Nevada. The case is pending before the Honorable Judge Mike K. Nakagawa, and the Debtors have requested joint administration of the cases under Case No. 18-10792 (MKN).

Important Information & Dates

A hearing on the Debtor’s First Day Motions was held on February 21, 2018 at 3:00 PM (PST) before the Honorable Judge Mike K. Nakagawa, United States Bankruptcy Court for the District of Nevada, in the Foley Federal Building, 300 Las Vegas Blvd. South, Las Vegas, NV 89101, in Courtroom 2. 

Please click below to view and download the First Day Motions and the First Day Orders:

First Day Motions

First Day Orders

Dates

June
20

General Bar Date

________
August
15

Governmental Bar Date

___________
September
20

Confirmation Hearing

9:30 AM (PST)
February
16
______

Petition Date

February
21
3:00 PM (PST)
March
22
1:00 PM (PST)

Meeting of Creditors

June
20
________

General Bar Date

August
15
___________

Governmental Bar Date

Parties

Debtor's Counsel

Brownstein Hyatt Farber Schreck, LLP

100 North City Parkway
Suite 1600
Las Vegas, NV   8910-4614
https://www.bhfs.com/
Phone: 702.382.2101
Fax: 702.382.8135
Bryan A. Lindsey
Samuel A. Schwartz

United States Trustee and Court Information

Office of the United States Trustee

300 South Las Vegas Blvd.
Suite 4300
Las Vegas, NV   89101
Phone: 702.388.6600
Edward McDonald

United States Bankruptcy Court for the District of Nevada

Foley Federal Building
300 Las Vegas Blvd. South, Courtroom 2
Las Vegas, NV   89101


Debtors

Case Number
Debtor Name
Petition Date
18-10792 Lucky Dragon Hotel & Casino, LLC February 16, 2018
18-10850 Lucky Dragon, LP February 21, 2018

Creditors’ Committee

The Creditors’ Committee

 

On March 8, 2018, the United States Trustee appointed the Official Committee of Unsecured Creditors to represent the interests of the Debtors’ unsecured creditors.  The Committee is comprised of three members: (i) Aristocrat Technologies Incorporated and (ii) Gaming Partners International.  The Committee selected Darrell Horton, Global Director of Credit and Accounts Receivable/Finance of Aristocrat Technologies Incorporated to serve as the chairperson of the Committee.

 

Counsel for the Committee

 

            The Committee selected Levene, Neale, Bender, Yoo & Brill L.L.P. and Kolesar & Leatham LLP as its counsel.  Parties may contact counsel for the committee by calling or emailing:

 

Eve Karasik, Esq.

Levene, Neale, Bender, Yoo & Brill L.L.P

10250 Constellation Blvd. Suite 1700

Los Angeles, California 90067

Telephone: 310-229-1234

Facsimile: 310-229-1244

Email: ehk@lnbyb.com

 

James P. Shea, Esq.

Kolesar & Leatham LLP

400 S. Rampart Blvd. Suite 400

Las Vegas, Nevada 89145

Telephone: 702-362-7800

Facsimile: 702-362-9472

Email: jshea@klnevada.com

 

Deadlines for Filing Proofs of Claim in the Debtors’ Cases

 

The deadline to file proofs of claim in Lucky Dragon Hotel & Casino LLC’s case was June 20, 2018. The June 20, 2018 deadline to file proofs of claim in Lucky Dragon Hotel & Casino LLC’s Case and additional instructions relating to filing a proof of claim is set forth in the Notice of Chapter 11 Bankruptcy Case filed in Lucky Dragon Hotel & Casino LLC’s Case on February 16, 2018 and which appears as Docket No. 15 in Lucky Dragon Hotel & Casino LLC’s Case.

 

The deadline to file proofs of claim in Lucky Dragon LP’s case was June 27, 2018. The June 27, 2018 deadline to file proofs of claim in Lucky Dragon LP’s Case and additional instructions relating to filing a proof of claim is set forth in the Notice Of Chapter 11 Bankruptcy Case filed in Lucky Dragon LP’s case on February 21, 2018 and which appears as Docket No. 4 in Lucky Dragon LP Case.

 

Committee’s Position on Important Issues in the Cases

 

1.      Cash Collateral – the Committee has taken the position that the primary secured creditor of Lucky Dragon LP, Snow Covered Capital (“SCC”) does not have any interest in the cash of Lucky Dragon Hotel and Casino LLC (“LLC”), and that all the cash is property of LLC, consequently SCC has no standing to object to the Debtors’ use of cash. The Court has agreed with this position.

 

2.      Post-Petition Financing – the Committee supports the Debtors’ proposed post-petition borrowing of $3,000,000, secured by substantially all of the Debtors’ assets.  The borrowed funds are necessary to keep the Debtors’ business in operation and maintain going-concern value through a sale of the hotel and casino or confirmation of a chapter 11 plan. On June 5, 2018, the Court denied the Debtors’ motion to obtain Post-Petition Financing.

 

3.      Key Employee Retention Plan (“KERP”) – the Debtors filed a motion to approve increased compensation for three of their insider officer, director, and/or employees.  The Committee opposed the proposed increased compensation, and the Committee successfully had the compensation reduced.

 

4.      Relief from the Automatic Stay (“RFS”) – SCC filed a motion seeking relief from the automatic stay to continue foreclosure procedures on the real property for the hotel and casino.  The Committee joined the Debtors in opposing SCC’s RFS Motion, and the Court denied the motion. However, the Court will permit SCC to file a new RFS Motion in June 2018.

 

5.      Sale Procedures – Debtors filed a motion to approve auction and sale procedures for sale of the business as a going concern.  The Committee supports the sale procedures to maximize return to creditors. The Court approved the Sale Procedures as well as the Debtors’ engagement of Innovation Capital to serve as sale advisor for the Debtors to market the property for a going concern sale.

 

6.      Chapter 11 Plan – the Debtors filed a joint Chapter 11 Plan along with a Disclosure Statement.  The Chapter 11 Plan provides for either a sale of the hotel and casino property or a restructuring of the Debtors’ capital structure with a new investment and/or refinancing, and  with the Debtors making the election between the alternatives before the hearing on confirmation of the Plan. The Committee is presently evaluating the filed Chapter 11 Plan and Disclosure Statement. The Committee’s goal is to support the alternative that maximizes the recovery general unsecured creditors.