Moulin Rouge prospective buyers miss deadline
The prospective buyer of the historic Moulin Rouge casino site in Las Vegas missed a short deadline this week to show proof of funds, raising questions over whether a long-awaited deal for the property has again fallen apart.
Scott Johnson, a principal with the company seeking to buy the site on Bonanza Road near Martin Luther King Jr. Boulevard, remained optimistic Wednesday that his group would soon demonstrate its financial wherewithal, blaming the hiccup on a lender changing the schedule of the wire transfer.
“All funds will be in and the transaction complete,” he said by email.
Las Vegas Moulin Rouge LLC, which unsuccessfully bid for the 15-acre property two years ago, made a formal $9.5 million offer last week to acquire the site with the lofty aim of transforming the area into “Uptown” Las Vegas via a $1.6 billion megaproject.
But as part of the process, the company was supposed to deposit the entire purchase amount into an escrow account by Tuesday. The deadline passed and the funds were still not received as of Wednesday, according to Kevin Hanchett, the court-appointed receiver for the foreclosed casino site.
Every offer for the property is subject to court approval. Yet prospective buyers must first show proof of funding before Hanchett will file a motion with the court to consider a deal.
He purposely provided Las Vegas Moulin Rouge LLC a tight deadline, he said, because offers from other would-be buyers in the past have been hindered by financial struggles.
The site has been in foreclosure since 2009. More than 300 investors are waiting to recoup at least some of $19 million they collectively spent on a hotel and casino project that collapsed during the economic downturn.
Contact Shea Johnson at sjohnson@reviewjournal.com or 702-383-0272. Follow @Shea_LVRJ on Twitter.