SEARCH NEWS:

 

Court Approves Castaways Loan

The additional funding from Vestin Mortgage comes a few weeks after the lender agreed to forward an additional $2 million to the Castaways, which filed for Chapter 11 bankruptcy protection in June.

A portion of the loans will be used to pay off a $1 million emergency loan Castaways received from USA Capital. USA Capital had sought to provide the additional $1 million but Vestin protested, saying it was unwilling to lend more funds to the money-bleeding property.

The deal has preserved Vestin's position as the first priority lender in the bankruptcy proceedings. Vestin is owed another $7.5 million from a $20 million loan it arranged for the Castaways to allow it to invest in a planned conversion into a Holiday Inn franchise.

< Gaming News