Elvis Casino Property on Las Vegas Strip Foreclosed

A Las Vegas casino that would have featured Elvis and Muhammed Ali themes won't be built as the company that proposed it falls apart.

Plans to develop a casino on the Las Vegas Strip with an Elvis Presley theme have been ruined by the recession, and now the company which owned the property has defaulted and is eyeing bankruptcy. FX Real Estate and Entertainment, which owned the prime property across from CityCenter, is claiming $462 million in lost revenue after writedowns, on revenue of only $6 million.

FX had planned to create a resort casino featuring Elvis and Muhammad Ali themes. The company had arranged licensing deals with the owners of those brands, but those have been dropped as FX ran out of money.

First lien holders are currently collecting rent from the small businesses on the property, but say FX is charging an exorbitant fee to continue managing the land. First lien holders say they are still owed $259 million of the $280 million they lent FX, but the property value had dropped to only $219 million.

Even worse off are second lien holders, who can expect to lose every penny of the $195 million they invested into the gambling project.

Debts are increasing, as rents are insufficient to pay even the interest due on loans.

Lenders have now filed a lawsuit asking a receiver be placed in charge of the property. The suit contests that "the fees and expenses which borrower and/or its related entities are currently charging the first lien lenders for managing the real property are excessive and disproportionate to those customarily paid in Clark County."

FX is owned by Robert F. X. Sillerman, who also owns the "American Idol" television show, one of the biggest successes on the air.