Vegas Monorail seeks more time on bankruptcy plan

LAS VEGAS (AP) - The Las Vegas Monorail is asking a federal bankruptcy judge for three more months to file a bankruptcy reorganization plan.

The nonprofit monorail wants to file its Chapter 11 reorganization plan by Aug. 17.

Its current deadline is May 19, the same day U.S. Bankruptcy Judge Bruce Markell in Las Vegas is due to consider a request to set an Oct. 18 deadline to approve the plan.

The monorail filed for bankruptcy protection in January, saying it has debts between $500 million and $1 billion. But monorail officials said the system makes enough money to keep operating on a 3.9-mile route linking several hotels and the Las Vegas Convention Center.

The system began service in 2004 after floating $650 million in bonds for construction.

Monorail President and CEO Curtis Myles said in court filings that the monorail has tried to stabilize its business since filing for bankruptcy. He added that it is cooperating with creditors.

The judge has not yet ruled on motions from Wells Fargo and an insurance company that argue the monorail should file a different type of bankruptcy case because it acts more like a municipality than a normal business. The insurance company, Wisconsin-based Ambac Assurance Corp., insured tax-exempt bonds Nevada issued to construct the transport system.

Myles said the motions "imposed significant burden" on the monorail, including depositions of five monorail employees and producing documents for opposing lawyers, and because of that, the monorail didn't have time to produce its reorganization plan.

"Because it is possible that this Chapter 11 case could be dismissed, I do not believe it is an effective use of the debtor's resources to formulate a plan of reorganization until the court has issued its ruling on the dismissal motion," Myles said.