INCLINE VILLAGE " Management of the Cal Neva Resort Spa Casino at Lake Tahoe is being taken over by a court-appointed receiver until its current owner, Namcal, pays back a $25 million loan or the resort once owned by Frank Sinatra is sold at a foreclosure sale.
A Las Vegas lawyer representing the lender, Delaware-based Canpartners, said the move is being made because Canpartners wants to keep the hotel and casino operational.
"We felt the property was in danger of waste and loss and didn't have sufficient financing to continue operating," Mark Dzarnoski told the North Lake Tahoe Bonanza.
Canpartners lent Namcal the $25 million in November 2007 with the hotel-casino property as collateral.
Fidelity National Title Insurance Company filed a default notice on behalf of Canpartners with the Washoe County Recorder's Office on Dec. 9, 2008.
Under Nevada law, Canpartners can sell the Cal Neva three months after serving the notice of default, which would be as soon as March 9.
Dzarnoski said the court-appointed receiver is Michael McPherson.
"A receiver basically has very broad authority to manage the property," Dzarnoski said. "We view his role as going in and evaluating the current management set up. He's not there day to day, but he's overseeing all the operations."
When it was owned by Sinatra from 1960 to 1963, the Cal Neva drew Hollywood stars such as Marilyn Monroe, Peter Lawford, Dean Martin and Sammy Davis Jr.
Sinatra's gambling license was stripped by the Nevada Gaming Control Board after Chicago mobster Sam Giancana showed up at the resort.