Billionaire Bass Brothers Reach an Agreement with Unsecured Creditors of Lake Las Vegas Project

by San Antonio Attorney

Fort Worth’s billionaire Bass brothers have reached a settlement deal regarding a legal battle over the Lake Las Vegas project that collapsed.

Lake Las Vegas is a 3,600-acre high-end resort project with all the glamour one would find in Las Vegas: trendy houses, classy hotels, a Mediterranean-like neighborhood, golf courses and, a casino. They are all developed around a huge man-made lake with spectacular mountain views.

Unfortunately, the giant venture went bust after a sturdy kick off during the late 1990s, and it filed for bankruptcy in 2008. The Ritz-Carlton hotel built in the vicinity also went bankrupt and closed down.

The bankruptcy was finished in 2010, but its main investors, including Lee and Sid Bass of Fort Worth, were sued by unsecured creditors charging sweetheart insider deals and mismanagement that caused the company’s failure.

The lawyers representing the Bass brothers said the collapse was largely caused by the national housing market crash. They also said that it was Credit Suisse that urged the investors to withdraw their shares.

The huge case was slated for a jury trial on Aug. 18. However, a settlement has been reached, the court filings show.

The unsecured creditors’ claims involved the $470 million worth of shares that the investors withdrew the income they made out of the loans from lenders led by global bank Credit Suisse. The Bass Brothers took a total of $221 million.

The court papers do not state the amount of the settlement, and not one of the parties concern in the case would make a statement regarding the resolution. According to a person who is familiar with the case, the defendants will make a payment to the unsecured creditors, but the amount has not been revealed.

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