The Las Vegas Monorail has been given court permission to send its bankruptcy-exit plan to creditors for a vote.
U.S. Bankruptcy Judge Bruce Markell on Monday gave the bankrupt nonprofit the approval to send its disclosure statement to creditors to allow them to vote on the plan, according to the Las Vegas Review-Journal. The disclosure statement outlines the exit plan in simple terms.
Once creditors vote, the case is set to resume in September for final approval of the plan, the newspaper said.
The monorail operator filed for Chapter 11 bankruptcy in 2010, as did the parent of its insurer, Ambac Assurance, leaving bondholders with debt that is not being serviced and insurance that is not paying claims.
Ambac insured $451 million of first-tier revenue bonds that were issued through the Nevada Department of Business and Industry.
Wisconsin regulators, who oversee Ambac, have been unraveling the insurer’s obligations.
Nuveen Asset Management reported holding more than half the monorail’s first-tier debt in 22 Nuveen funds. Other debtholders include Eaton Vance, Wells Fargo, and hedge funds Restoration Capital Management LLC and Stone Lion Capital Partners LP.
