Hooters Bares Its Knuckles In Court
October 5, 2011 by UPI - United Press International, Inc.
LAS VEGAS, Oct. 4 (UPI) — Hooters Las Vegas said in a bankruptcy court filing its major creditor was attempting to cut out smaller creditors in a courtroom showdown.
The major creditor, Canpartners Realty Holding Co. IV LLC, has filed papers to force the Hooters casino to set aside $2 million for the smaller creditors, who are owed around $3 million, the Las Vegas Sun reported Tuesday.
With the $2 million set aside, Canpartners would move immediately to foreclose on the business.
Canpartners has said Hooters is holding onto $9 million in cash in order to attract new investors and keep the business going.
Canpartners, however, sees the 696-room resort and casino as a lost cause, a casino that features waitresses in skimpy clothing, which is nothing new to the Las Vegas strip.
Hooters, however, has filed papers that said Canpartners’ strategy “should be of concern to U.S. Bank (which is representing the small creditors) as the entity responsible for protecting the rights and interests of all the holders of the senior secured debt.”
Hooters calls Canpartners opportunistic. They hold $181 million of the company’s debt on paper, but bought the debt at 22 cents to the dollar.