Vegas monorail proposes to reduce debt by $630M

LAS VEGAS (AP) - The bankrupt Las Vegas Monorail says it wants to reduce $630 million in debt through reorganization.

The private company that owns the monorail filed a plan Tuesday in federal bankruptcy court in Las Vegas. It filed for Chapter 11 bankruptcy in January.

Monorail officials say the company can afford operating expenses.

But lawyers say the system that opened in July 2004 will have to stop running by 2019 if it can't reduce debt.

The system runs a 3.9-mile route linking several hotels and the Las Vegas Convention Center.

The monorail has three tiers of debt totaling $648 million. It wants to eliminate two tiers and nearly $200 million, then reduce its first tier debt of $450 million to $18.5 million.

Bondholders will vote and a judge must approve the plan.