Monday, Nov. 8, 1999 | noon
The Venetian hotel-casino posted $30.7 million of bonds in District Court today and a judge released the underlying mechanics liens.
More than $420 million in addition bonds are expected to be posted Wednesday, freeing the Strip resort from the threat of foreclosure by construction firms that haven't been paid for work done on the hotel-casino.
Today's action followed Friday's ruling by Senior District Judge James Brennan that state law required the Venetian to "bond around" about $330 million of mechanics liens filed against it. The bonds must be 1.5 times the amount of the lien claims.
Brennan accepted the $30.7 million of bonds posted today, but ordered details of the premium payments sealed at the request of the Venetian.
Venetian General Counsel David Friedman said the Venetian would either appeal or seek reconsideration of Brennan's Friday ruling requiring it to post the bonds. The Venetian had sought to bond around just $150 million of liens, arguing that the $330 million total includes duplicate claims.
The Venetian has also indicated it plans to contest liens filed by subcontractors who signed waivers allegedly relinquishing their rights to file claims. Subcontractor attorneys have said such contracts violate state laws.
Friedman declined to disclose the premiums the Venetian is paying for the bonds, or the collateral the resort is putting up for the bond issuers. He said those details might be included in the Venetian's next financial report to the Securities & Exchange Commission if resort executives deem the information material to bond investors.
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