CRYSTAL BAY " The Cal Neva Resort, Spa & Casino is facing potential foreclosure.
"We're working with the lenders," said John Harounian, an associate asset manager with the Cal Neva's ownership group, Namcal.
Harounian said he is confident the issue will be resolved before the lender, Canpartners Realty Holding Company, can sell the property, which saddles the Nevada and California state line.
In November 2007, Canpartners lent Namcal $25 million with the Cal Neva property as collateral. On Dec. 9, 2008, Fidelity National Title Insurance Company, on behalf of Delaware-based Canpartners, filed a default notice with the Washoe County Recorder.
Namcal has until Saturday to settle the debt; otherwise, Canpartners could begin selling the property on March 9.
The Washoe County Recorder's office has not received a notice of sale or a record of a canceled default for Namcal, said Washoe County Recorder Kathryn Burke.
"A lot of times after we see a notice of default, we see a notice of sale, but we have seen no notice yet," Burke said.
This notice is Namcal's most recent challenge. Since November 2006 the company has been released from liens from various companies, and the Reno-Sparks Convention and Visitors Authority.
The Cal-Neva's ownership group, Namcal, is owned by Namwest, which is owned by Namco Capital Group, a Los Angeles-based investment company owned by Ezri Namvar.
Namvar faces at least 17 lawsuits in Los Angeles Superior court which allege that Namco has failed to pay back investors who gave him from $200,000 to $18 million each, according to court documents. The amount owed to investors could near $400 million.
On Dec. 22 a group of investors filed involuntary bankruptcy against Namvar and Namco.
"I don't know about those," Harounian said in response to if these lawsuits would affect Namcal's ability to settle its debts.