Tahoe casino tied to Sinatra to be sold
Reno, Nevada (AP) – A Lake Tahoe casino once owned by Frank Sinatra is set to go up for a foreclosure sale April 8.
Because the Cal Neva Resort, Spa and Casino straddles the California-Nevada line, separate auctions that day in Reno and Roseville, Calif., are listed on the trustees notice.
The first is scheduled for 10 a.m. in Roseville, while the second is set for 11 a.m. in Reno.
The auction in either state could affect the other state’s sale if a party bids the full or partial amount of the property.
In December, the resort’s current owner, Namcal, was slapped with a notice of default by its lender, Delaware-based Canpartners, over a USD 26.8 million debt.
Under Nevada law, Canpartners can sell the Cal Neva three months after serving the notice of default.
Management of the resort has been taken over by a court-appointed receiver until Namcal pays back the loan or the property is sold at a foreclosure sale.
If Namcal files for bankruptcy, the sale will be postponed in both states.
Namcal bought the Cal Neva from former owner Charles Bluth in February 2005.
When it was owned by Sinatra from 1960 to 1963, the Cal Neva drew Hollywood stars such as Marilyn Monroe, Peter Lawford, Dean Martin and Sammy Davis Jr.
Sinatra’s gambling license was stripped by the Nevada Gaming Control Board after Chicago mobster Sam Giancana showed up at the resort.