The closing of the nightclub Eve, partly owned by “Desperate Housewives” star Eva Longoria, has set off a new round in the legal battle for control of its bankrupt parent company, Beso, LLC. The nightclub is located in the Crystals mall in Las Vegas.
Ronen Nachum, a Beso creditor, and Mali Nachum, part owner, asked U.S. Bankruptcy Court Judge Mike Nakagawa to place a trustee in charge of Beso shortly after the closure of the nightclub. The judge denied the request to move quickly on the matter, but left open the possibility of hearing the request on a normal timeline.
Beso owed Crystals mall, part of MGM Resorts International’s CityCenter complex, $2.3 million in back rent at the time of filing for Chapter 11 in January 2011. The mall is the largest creditor in the case. Beso has run up hundreds of thousands of dollars more in unpaid bills since the filing.
Eve was the only nightclub at Crystals, and tried to position itself as a Las Vegas magnet for entertainment celebrities with Longoria as the marquee owner.
However, infighting among the owners erupted in 2010 which lead to a protective order being issued against Ronen Nachum.
Bank account garnishments, unpaid rent to Crystals, a contractor’s lien and ongoing losses drove Beso to file bankruptcy in spite of grossing $14.6 million in 2010.
Benjamin Brand Services – Chicago bankruptcy attorney