Lucky Dragon filed for bankruptcy protection last Friday, the Las Vegas Review-Journal reports. Developer Andrew Fonfa now employs 98 people after closing the casino floor and restaurants in January. Foreclosure loomed following a $90 million loan going into default.
The newspaper reports that the resort was valued at $143 million in bankruptcy documents. Another 179 people invested in the resort through the EB-5 visa program that helps foreigners gain U.S. residency by investing $500,000 into a business that creates at least 10 jobs.
Those investors ponied up $89.5 million. The foreclosure auction was reschedule on Thursday.
Financial troubles were first made public in early January when the casino posted a sign on its door reading “Casino Temporarily Closed.” Lucky Dragon management said the casino was ‘reorganizing,’ and that meant less gaming and dining options and layoffs for casino workers.
Within months of opening, the Lucky Dragon revamped its restaurants and expanded its baccarat operations. But, according to the Las Vegas Review-Journal, customers were few as the hotel-casino celebrated its first anniversary last month.
“One year later, several evening visits between December 3 and Monday [December 7] found a maximum of 14 people dining in Pearl Ocean and no one in Phoenix [the high-end restaurant]. There was just a handful of people at the slots,” the paper’s story said.