Las Vegas Sun

March 29, 2024

Small downtown Las Vegas motel files for bankruptcy

Beverly Palms Hotel

A small downtown Las Vegas motel filed for bankruptcy protection Wednesday after it was sued by its mortgage holder.

The filing was made by Crest Budget Inn LLC, which does business as the Beverly Palms Hotel at 218 S. 6th Street.

Records show the business was sued Jan. 14 in Clark County District Court by City National Bank, which is owed $1.25 million.

The bank alleged breaches of its lending contract and sought appointment of a receiver to take over the business. Records indicate the state court hadn't acted on the receivership request prior to the bankruptcy, and the bankruptcy is likely to put the lawsuit on hold.

The motel, which rents rooms for $130 per week, has 110 rooms.

The bankruptcy filing said the business generated income of about $134,000 in 2008, but that fell to less than $38,000 in 2009 and less than $45,000 in 2010.

The Beverly Palms, which filed for Chapter 11 reorganization, said its real estate and improvements are worth $1.8 million while its debts total $1.277 million, including the mortgage.

Crest is managed by Seth McCormick.

This was one of three business bankruptcy filings in Las Vegas in recent days.

The others were by:

--LKBJ Inc., 6412 Losee Road in North Las Vegas, doing business as Shea's Bar & Grill. It filed for Chapter 7 liquidation, listing assets of about $62,000 against liabilities of about $265,000. The business generated income of about $24,000 last year, the filing said. The filing was signed by Kathleen Shea, secretary of the company.

--X'treme Plastering LLC of Las Vegas, which also filed for Chapter 7. That firm listed no assets and liabilities of nearly $116,000. The only income listed in the filing was for 2009 of nearly $23,000. The president of that company is Robert Phillips.

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