Investment firm acquires North Tahoe’s Cal Neva Resort & Casino
A Silicon Valley billionaire has acquired the storied Cal Neva Resort & Casino in Crystal Bay, Nev., for $35.8 million, an official said Friday, Jan. 12.
Lawrence Investments LLC, a venture capital investment firm headed by Oracle Corp. co-founder Larry Ellison, bought the property via bankruptcy proceedings. The deal closed on Wednesday, Jan. 10. An attorney connected to the case confirmed the transaction closed.
The transaction comes on the heels of an agreement between major creditors in the bankruptcy case that removed a key hurdle in Lawrence Investments LLC’s quest to acquire the financially troubled property.
A compromise and settlement agreement between Hall CA-NV LLC, The Penta Building Group, debtor New-Cal Neva Lodge LLC, and other parties was entered in U.S. Bankruptcy Court in Reno on Dec. 26. Judge Gregg W. Zive is presiding over the case.
Under terms of the agreement, the Dallas, Texas-based Hall will receive $26,885,000 plus reimbursement of money it advanced to Capital One. The bulk of the money owed to Hall was used to fund a multimillion-dollar renovation of the resort and casino a few years ago.
The Las Vegas, Nev.-based Penta, which was the general contractor for the renovation project, as well its sub-contractors and D4US LLC of Incline Village, will receive $8,025,000. The bulk of that money goes to Penta, which had filed a claim of about $7.1 million with the bankruptcy court.
Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.