Court Confirms Lake Las Vegas Plan of Reorganization

Company Expects to Emerge from Chapter 11 Shortly

LAS VEGAS--(EON: Enhanced Online News)--Praising the efforts and cooperation of the participants in the Lake Las Vegas chapter 11 cases, Bankruptcy Judge Linda B. Riegle yesterday ruled that she would confirm the Plan of Reorganization proposed by Lake Las Vegas and the official committee of unsecured creditors.

“We are delighted by the Court's decision today and look forward to emerging from chapter 11 as a restructured going concern with a clean balance sheet”

"We are delighted by the Court's decision today and look forward to emerging from chapter 11 as a restructured going concern with a clean balance sheet," said Frederick E. Chin, the CEO of Lake Las Vegas. "This restructuring process has been extremely complex, and at times, heavily contested, and we appreciate the patience and cooperation of the various constituents, including homeowners, landowners, and vendors. The debtors and the committee worked very hard to develop a consensual plan of reorganization that would have broad support, and we are gratified that we were able to achieve overwhelming creditor approval and resolve every objection to the plan's confirmation.

"I am excited that we will now be able to focus all of our efforts on continuing to create an environment in which the community will grow and prosper as the area's economy and the real estate market recover."

Lake Las Vegas will remain under the stewardship of The Atalon Group LLC, which will provide asset management services to and for the benefit of the reorganized company. Mr. Chin and James Coyne, principals in The Atalon Group, will continue in their current roles as project managers through December 31, 2011.

Under the Plan of Reorganization Lake Las Vegas will sell much of its remaining land in Phases I and II of the project over the next two years, and focus its efforts on the long-term development of Phase III.

Among other significant benefits, the Plan provides for exit financing for the reorganized company to cover operating expenses, fund Plan obligations, and finance T-16 LID (“Local Improvement District T-16”) development improvements. These include building a replacement P-40 Pump Station and completing the roadway improvements on Lake Las Vegas Parkway, the entrance to the Community, which should enhance the value to all stakeholders. Under the Plan, funding for continued subsidy payments to the Lake Las Vegas Master Property Owners Association (“MPOA”), LID assessments and property taxes will continue, allowing Lake Las Vegas to satisfy its ongoing obligations as a landowner and as master developer. The plan also provides for the establishment and funding of an independent creditor trust to prosecute avoidance actions and claims against former insiders. Larry Lattig of Mesirow Financial will serve as the trustee of the trust.

Lake Las Vegas is a 3,592-acre master-planned residential and resort community adjacent to Lake Mead National Recreational Area and 20 miles east of the center of Las Vegas. It includes a 320-acre man-made lake and more than 1,600 completed residential units. Lake Las Vegas filed for Chapter 11 protection from creditors July 17, 2008.