LAS VEGAS The Morgans Hotel Group-controlled Hard Rock Hotel & Casino, Las Vegas, has filed a lawsuit in New York state court to block a foreclosure action and ensuing public auction of the 1,500-key property.
The 825-page lawsuit claims that NRFC HRH Holdings LLC, an entity created by lender NorthStar Realty Finance Corp., does not have a legal right to foreclose on the property, Las Vegas Review-Journal reports. NRFC HRH Holdings announced plans to foreclose earlier this week, and an auction is scheduled for Monday.
NRFC HFH Holdings controls part of the US$1.36 billion loan used to acquire and renovate the property, which was restructured in 2009. Much of that debt will mature on Sunday.
“This last-minute attempted foreclosure is to take place two days before the maturity of substantial debt senior to the NorthStar loan, making it perfectly clear that (its) efforts are tactical and self-centered, rather than some legitimate attempt to vindicate its legal rights,” the lawsuit says.