Convention center site may move out of bankruptcy court

More time. That’s what Randy Lane has been given by a bankruptcy court judge in Sacramento.

January is the next scheduled court date for the convention center debtor and creditors.

Last month Lane asked for more time to come up with a plan for the 11-plus acre site that has languished in bankruptcy since October 2009. At that time he was asking for 270 days. At the hearing on Nov. 1 he was given until Jan. 10 to resolve the property tax issue. In other words, figure out a payment plan.

It could be years before work resumes on the would-be convention center. Photo/LTN file

One of the creditors is contemplating filing a motion to dismiss the case from bankruptcy court. This, too, is likely to be heard in January.

“It would remove the bankruptcy court from the proceedings, and the parties could either foreclosure, sell, reach agreements, etc., without needing the bankruptcy court’s approval,” South Lake Tahoe City Attorney Patrick Enright explained. “The bankruptcy court has certain powers under the bankruptcy code to impose a plan, but without a plan and no real hope of a plan from the debtor, there is little point in the bankruptcy court keeping the case indefinitely.”

— Kathryn Reed