Maxim mum on sales talks

The mortgage company that bought the Maxim hotel-casino out of bankruptcy in April 1998 appears to have found a buyer for the property.

West Coast Mortgage Ltd. of Los Angeles plans to sell the Maxim to time-share company Premier Interval Resorts, Reno attorney Mike Alonso said.

"Premier Interval Resorts has a deal with the current owner of the Maxim to purchase the Maxim," Alonso said.

Premier has until mid-May to close the sale, Alonso said.

But a separate deal under which West Virginia-based MTR Gaming Group would have signed a lease to operate the Maxim's casino and 300 of its 800 hotel rooms has fallen through, Alonso said.

"That deal went south," said Alonso, who represents MTR. "We were trying to negotiate a deal and it hasn't occurred."

Under the failed deal, Premier would have turned the 500 hotel rooms not leased to MTR into time-share units, Alonso said. It is unclear whether Premier will now operate the whole property as a time-share resort or seek another partner.

MTR, which does business as Speakeasy Gaming of Las Vegas Inc., operates the Speedway hotel-casino in North Las Vegas. The company also has a casino property in the Reno area.

West Coast bought the Maxim in a bankruptcy court auction in April 1998 for $15 million. The company had been owed $42 million by previous Maxim owner Baby Grand Corp. and its principal, Sacramento, Calif., tomato grower John Anderson.

Baby Grand's assets were seized by the Federal Deposit Insurance Corp. in late 1997. The FDIC had earlier seized control of a savings and loan that had loaned Baby Grand $33.5 million.

Anderson has since been sued by state gaming officials, who allege Anderson improperly transferred money from Baby Grand to his California companies. The suit seeks payment of a $250,000 fine imposed on Anderson by the state Gaming Commission.

In December 1997, longtime casino executive Ed Nigro took over management of the Maxim at the request of West Coast. Nigro has been operating the property under a five-year lease.

Nigro succeeded in turning the Maxim's operations around, but West Coast has said since acquiring the property that it would consider reasonable sale offers.

Neither Nigro nor West Coast could be reached for comment.

Information about Premier Interval Resorts is sketchy. Alonso said the company is owned by Hillel Meyers, an Orlando time-share developer; Donald Saunders, of California; and Gary Kornman, of Colorado.

Neither Premier nor its principals could be reached for comment.

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