LAS VEGAS (AP) — A federal judge has rejected the Las Vegas Monorail’s plan for financial solvency.
The Las Vegas Review-Journal reports that U.S. Bankruptcy Court Judge Bruce Markell rejected Friday the monorail’s plan to exit Chapter 11 bankruptcy because the terms “doom it to failure.”
Monorail officials had projected that if their savings plan was approved the monorail would still come up $38.4 million short in eight years.
The line runs parallel to the Las Vegas Strip along a 3.9 mile course linking several hotels and the Las Vegas Convention Center.
The monorail has made a profit on operations despite sinking revenues and ridership. But it has not been able to cover the bonds sold a decade ago to fund its July 2004 opening.
The monorail’s debt has since climbed to $658 million.
Information from: Las Vegas Review-Journal, http://www.lvrj.com
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