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63-667: It began as the Western Village Truck Stop in the 1960s. William "Si" Redd purchased it in 1976 and renamed it five years later as Peppermill's Western Village. Until 1990, it was the only casino in Mesquite. It was renamed Si Redd's Oasis in 1993, later shortened to simply Oasis. In 2001, Redd sold the Oasis to Randy Black Sr. and Black Gaming . Portions of the Oasis were closed in December 2008, due to financial losses. The Oasis' casino

126-400: A stunt performer from nearby Logandale , died while performing a televised motorcycle stunt on a pedestrian bridge connected to the Oasis. The resort paid $ 100,000 to set up the stunt, which attracted 23,000 spectators. In July 2000, an eight-year-old girl was sexually assaulted by a Utah man who lured her away from the resort's Family Fun Center Arcade. The girl's family sued the Oasis for

189-731: A 2005 study claimed the drop may have been due to an increase in the incorrect classification of many bankruptcies as "consumer cases" rather than "business cases". Cases involving more than US$ 50 million in assets are almost always handled in federal bankruptcy court, and not in bankruptcy-like state proceeding. The largest bankruptcy in history was of the US investment bank Lehman Brothers Holdings Inc., which listed $ 639 billion in assets as of its Chapter 11 filing in 2008. The 16 largest corporate bankruptcies as of December 13, 2011 Enron, Lehman Brothers, MF Global and Refco have all ceased operations while others were acquired by other buyers or emerged as

252-407: A bank agreement. The casino's 27 table games were closed on December 1, while other casino and restaurant operations would be gradually phased out by December 5. Restaurant operations were expected to cease on the night of December 5. Some slot machines were left operational at the resort's front counter to maintain a nonrestricted gaming license. Black said that "no assurances" could be made as to when

315-403: A bankruptcy plan. The debtor in possession typically has the first opportunity to propose a plan during the period of exclusivity. This period allows the debtor 120 days from the date of filing for chapter 11 to propose a plan of reorganization before any other party in interest may propose a plan. If the debtor proposes a plan within the 120-day exclusivity period, a 180-day exclusivity period from

378-423: A business is unable to service its debt or pay its creditors , the business or its creditors can file with a federal bankruptcy court for protection under either Chapter 7 or Chapter 11. In Chapter 7, the business ceases operations, a trustee sells all of its assets, and then distributes the proceeds to its creditors. Any residual amount is returned to the owners of the company. In Chapter 11, in most instances

441-422: A disclosure statement must be approved by the bankruptcy court. Once the disclosure statement is approved, the plan proponent will solicit votes from the classes of creditors. Solicitation is the process by which creditors vote on the proposed confirmation plan. This process can be complicated if creditors fail or refuse to vote. In which case, the plan proponent might tailor his or her efforts in obtaining votes, or

504-689: A gaming boat off the coast of Mississippi on the Gulf of Mexico , but it went bankrupt and he lost US$ 20 million in it. He was the owner of Oasis , a hotel and casino in Mesquite, Nevada , from 1976 to 2001. He sold it for US$ 31 million. Meanwhile, he founded the Mesquite Vistas Land Development Co. and the Oasis Golf Course. Redd was inducted into the Gaming Hall of Fame in 1991, and

567-500: A higher price for divisions or other assets than a chapter 7 liquidation would be likely to achieve. Section 362(d) of the Bankruptcy Code allows the court to terminate, annul, or modify the continuation of the automatic stay as may be necessary or appropriate to balance the competing interests of the debtor, its estate, creditors, and other parties in interest and grants the bankruptcy court considerable flexibility to tailor relief to

630-505: A lack of adequate security in February 2001, seeking $ 5 million in punitive damages . On the night of May 13, 2005, the Oasis was partially evacuated when a Utah man began firing gunshots inside a hotel room. After a two-hour standoff and several unsuccessful attempts to contact the man, police entered the room and found that the man had shot and killed himself. William %22Si%22 Redd William Redd , also known as Si Redd (1911–2003)

693-407: A large role in many proceedings. Chapter 11 usually results in reorganization of the debtor's business or personal assets and debts, but can also be used as a mechanism for liquidation. Debtors may "emerge" from a chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of

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756-487: A miniature golf course and go-kart track located on the property, and announced plans to close the Denny's restaurant on May 31, 2009. During a 2010 Chapter 11 hearing, company officials considered demolition of the Oasis. On May 19, 2010, Randy Black Sr. said there was no timetable for demolition, and stated that the resort could reopen entirely if the local economy improved. At that time, 16 slot machines remained operational at

819-399: A plan cannot be confirmed, the court may either convert the case to a liquidation under chapter 7, or, if in the best interests of the creditors and the estate, the case may be dismissed resulting in a return to the status quo before bankruptcy. If the case is dismissed, creditors will look to non-bankruptcy law in order to satisfy their claims. In order to proceed to the confirmation hearing,

882-583: A process through which some of the debtor corporation's debts may be discharged. Determinations as to which debts are discharged, and how equity and other entitlements are distributed to various groups of investors, are often based on a valuation of the reorganized business. Bankruptcy valuation is often highly contentious because it is both subjective and important to case outcomes. The methods of valuation used in bankruptcy have changed over time, generally tracking methods used in investment banking, Delaware corporate law, and corporate and academic finance, but with

945-404: A profit. The trustee or debtor-in-possession normally rejects a contract or lease to transform damage claims arising from the nonperformance of those obligations into a prepetition claim. In some situations, rejection can also limit the damages that a contract counterparty can claim against the debtor. Chapter 11 follows the same priority scheme as other bankruptcy chapters. The priority structure

1008-522: A secured party with an interest in an aircraft the ability to take possession of the equipment within 60 days after a bankruptcy filing unless the airline cures all defaults. More specifically, the right of the lender to take possession of the secured equipment is not hampered by the automatic stay provisions of the Bankruptcy Code. In August 2019, the Small Business Reorganization Act of 2019 ("SBRA") added Subchapter V to Chapter 11 of

1071-500: A separate company, remained open as well. The Oasis was among the top three employers in Mesquite, along with Black Gaming's other two resorts. Ultimately, 347 employees were laid off. In February 2009, Black Gaming's bank agreement was extended, allowing it to continue with reduced operations. That month, the Mesquite City Council extended the Oasis' gaming and liquor permits until July 31, 2009. In May 2009, Black Gaming closed

1134-474: A significant time lag. Chapter 11 retains many of the features present in all, or most, bankruptcy proceedings in the United States. It provides additional tools for debtors as well. Most importantly, 11 U.S.C.   § 1108 empowers the trustee to operate the debtor's business. In Chapter 11, unless a separate trustee is appointed for cause, the debtor, as debtor in possession, acts as trustee of

1197-420: A spouse or parent. Further, creditors may file with the court seeking relief from the automatic stay. If the business is insolvent , its debts exceed its assets and the business is unable to pay debts as they come due, the bankruptcy restructuring may result in the company's owners being left with nothing; instead, the owners' rights and interests are ended and the company's creditors are left with ownership of

1260-558: A successful reorganization and retain control of the business and increase oversight and ensure a quick reorganization. A Subchapter V case contrasts from a traditional Chapter 11 in several key aspects: it is earmarked only for the "small business debtor" (as defined by the Bankruptcy Code), so, only a debtor can file a plan of reorganization . The SBRA requires the U.S. Trustee appoint a "subchapter V trustee" to every Subchapter V case to supervise and control estate funds, and facilitate

1323-466: A tool for escaping labor contracts, usually 30–35% of an airline's operating cost. Every major US airline has filed for Chapter 11 since 2002. In the space of 2 years (2002–2004) US Airways filed for bankruptcy twice leaving the AFL–CIO , pilot unions and other airline employees claiming the rules of Chapter 11 have helped turn the United States into a corporatocracy . The trustee or debtor-in-possession

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1386-421: Is available to every business , whether organized as a corporation , partnership or sole proprietorship , and to individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7 governs the process of a liquidation bankruptcy, though liquidation may also occur under Chapter 11; while Chapter 13 provides a reorganization process for the majority of private individuals. When

1449-399: Is defined primarily by § 507 of the Bankruptcy Code ( 11 U.S.C.   § 507 ). As a general rule, administrative expenses (the actual, necessary expenses of preserving the bankruptcy estate, including expenses such as employee wages, and the cost of litigating the chapter 11 case) are paid first. Secured creditors —creditors who have a security interest , or collateral , in

1512-442: Is given the right, under § 365 of the Bankruptcy Code, subject to court approval, to assume or reject executory contracts and unexpired leases. The trustee or debtor-in-possession must assume or reject an executory contract in its entirety, unless some portion of it is severable. The trustee or debtor-in-possession normally assumes a contract or lease if it is needed to operate the reorganized business or if it can be assigned or sold at

1575-464: Is the airline industry in the United States; in 2006 over half the industry's seating capacity was on airlines that were in Chapter 11. These airlines were able to stop making debt payments, break their previously agreed upon labor union contracts, freeing up cash to expand routes or weather a price war against competitors — all with the bankruptcy court's approval. Studies on the impact of forestalling

1638-957: The Nevada Business Hall of Fame in 2002. Redd made charitable contributions to the University of Nevada, Las Vegas , where he was a member of the UNLV Gift Club Palladium Society. Moreover, the Si Redd Room and the Redd Vision video screen scoreboard at the Thomas & Mack Center are named in his honor. He received the Chin's Humanitarian of the Year Award from the Muscular Dystrophy Association in 2001. Redd founded

1701-691: The Reno, Nevada , market. Redd founded a subsidiary, Bally Distribution Co., and he distributed jukeboxes in Carson City, Nevada , and Las Vegas. He also acquired the rights to video poker . In 1975, he founded Sircoma, later known as the International Game Technology , a slot machine manufacturer and distributor based in Reno, Nevada. He sold it to Gtech in 1986, and he served on its board of directors until 1991. Redd developed Pride of Mississippi ,

1764-502: The United States Trustee , can request the court convert the case into a liquidation under chapter 7, or appoint a trustee to manage the debtor's business. The court will grant a motion to convert to chapter 7 or appoint a trustee if either of these actions is in the best interest of all creditors. Sometimes a company will liquidate under chapter 11 (perhaps in a 363 sale), in which the pre-existing management may be able to help get

1827-652: The University of Mississippi in Oxford, Mississippi . Redd began his career in college, when he invested in a pinball machine in a small eatery in Mississippi. He subsequently founded Northwestern Music Co., and he distributed Wurlitzer jukeboxes in Sterling, Illinois , and Dixon, Illinois , with his brother-in-law. He subsequently became a distributor for Bally Manufacturing in Boston, Massachusetts . In 1967, he moved on to

1890-426: The Bankruptcy Code. Subchapter V, which took effect in February 2020, is reserved exclusively for the small business debtor with the purpose of expediting bankruptcy procedure and economically resolving small business bankruptcy cases. Subchapter V retains many of the advantages of a traditional Chapter 11 case without the unnecessary procedural burdens and costs. It seeks to increase the debtor's ability to negotiate

1953-514: The Black family already owned two of the city's four casinos, and the Oasis gave them 91 percent of the city's casino hotel rooms, 85 percent of the city's table games, and 80 percent of the city's slot machines. Employees alleged that Black had lied to them and was planning to demote veteran employees and cut their salaries. Black claimed that he rehired 800 of the Oasis' 900 employees, and that any salary cuts would be caused by Mesquite market conditions. At

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2016-671: The Las Vegas International Cultural Trade Center and Wild Animal Conservancy. He donated US$ 150,000 to Problem Gambling Consultants, a non-profit organization for gambling addicts . Redd was married three times. His first wife, Ivy Lee, died in 1974. His second wife, Marilyn, died in 1996. His third wife, Tamara, outlived him. He had two daughters, Vinnie Copeland and Sherry Green. He resided in Las Vegas, Nevada , and summered in Solana Beach, California . He

2079-446: The Oasis in recent years, which was seen as evidence of possible problems at the resort, including new competition. In December 1999, the Mesquite City Council was sued for its decision to deny the installation of a 99-foot sign advertising the resort's Oasis Casino Liquor Store. In June 2001, employees at the Oasis had to reapply for their jobs at the resort when it was sold to Randy Black Sr. for $ 31 million, despite monopoly concerns;

2142-461: The Oasis' facilities could reopen. The resort's hotel, RV park, golf course, and gun club were expected to remain open, as well as its timeshare facilities: the 34-unit Grand Destinations Vacation Club and the 39-unit Peppermill Palms at Mesquite, a total of 73 units. On December 5, much of the 900-room hotel was closed, leaving only 100 rooms. The casino's number of slot machines was reduced from 750 to 144. The casino's Denny's restaurant, owned by

2205-466: The Oasis, which was still being used for hotel guest overflow. At that time, five timeshare units were being maintained, while the new company was considering a refurbishment of the property, contingent on an improving economy. Demolition began on May 4, 2013, and was scheduled to last three months. The casino, six hotel buildings, a spa building, a pool, and the go-kart track were expected to be demolished. Approximately 90 percent of demolished materials from

2268-454: The buildings were expected to be recycled and re-used. Anthony Toti, chief executive officer of Mesquite Gaming, said the company would "start something very nice in a couple years" on the property. The Oasis' two timeshare buildings and its RV park were not demolished. A pedestrian bridge was also kept for future use. The site has since been used for annual events, including car shows and balloon festivals. On March 10, 1996, Butch Laswell ,

2331-412: The business. Chapter 11 affords the debtor in possession a number of mechanisms to restructure its business. A debtor in possession can acquire financing and loans on favorable terms by giving new lenders first priority on the business's earnings. The court may also permit the debtor in possession to reject and cancel contracts. Debtors are also protected from other litigation against the business through

2394-450: The casino. The same day, Black Gaming announced plans to demolish the Oasis, which was considered an "outdated, inefficient property." Demolition was expected to begin in June 2010, with a cost of $ 1.1 million. At least 300 hotel rooms were expected to be kept and remain operational, depending on business conditions. No plans for the property's future had been decided at that time. Up to that point,

2457-423: The chances of a successful outcome and sufficient debtor-in-possession financing may be unavailable during an economic recession. A preplanned, pre-agreed approach between the debtor and its creditors (sometimes called a pre-packaged bankruptcy ) may facilitate the desired result. A company undergoing Chapter 11 reorganization is effectively operating under the "protection" of the court until it emerges. An example

2520-497: The creditors' rights to enforce their security reach different conclusions. Chapter 11 cases dropped by 60% from 1991 to 2003. One 2007 study found this was because businesses were turning to bankruptcy-like proceedings under state law, rather than the federal bankruptcy proceedings, including those under chapter 11. Insolvency proceedings under state law, the study stated, are currently faster, less expensive, and more private, with some states not even requiring court filings. However,

2583-404: The date of filing for chapter 11 is granted in order to allow the debtor to gain confirmation of the proposed plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. If at least one class of creditors objects and votes against

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2646-444: The debtor does file a plan within the first 120 days, the exclusivity period is extended to 180 days after the order for relief for the debtor to seek acceptance of the plan by holders of claims and interests. If the judge approves the reorganization plan and the creditors all "agree", then the plan can be confirmed. §1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to "confirming" or "approving"

2709-430: The debtor remains in control of its business operations as a debtor in possession , and is subject to the oversight and jurisdiction of the court. A Chapter 11 bankruptcy will result in one of three outcomes for the debtor: reorganization, conversion to Chapter 7 bankruptcy, or dismissal. In order for a Chapter 11 debtor to reorganize, the debtor must file (and the court must confirm) a plan of reorganization. In effect,

2772-433: The debtor will be able to pay most administrative and priority claims (priority claims over unsecured claims ) on the effective date. Like other forms of bankruptcy, petitions filed under chapter 11 invoke the automatic stay of § 362. The automatic stay requires all creditors to cease collection attempts, and makes many post-petition debt collection efforts void or voidable. Under some circumstances, some creditors, or

2835-422: The debtor's property—will be paid before unsecured creditors. Unsecured creditors' claims are prioritized by § 507. For instance the claims of suppliers of products or employees of a company may be paid before other unsecured creditors are paid. Each priority level must be paid in full before the next lower priority level may receive payment. Section 1110 ( 11 U.S.C.   § 1110 ) generally provides

2898-537: The development of a consensual plan. It also eliminates automatic appointment of an official committee of unsecured creditors and abolishes quarterly fees usually paid to the U.S. Trustee throughout the case. Most notably, Subchapter V allows the small business owner to retain their equity in the business so long as the reorganization plan does not discriminate unfairly and is fair and equitable with respect to each class of claims or interests. The reorganization and court process may take an inordinate amount of time, limiting

2961-410: The exigencies of the circumstances. Relief from the automatic stay is generally sought by motion and, if opposed, is treated as a contested matter under Bankruptcy Rule 9014. A party seeking relief from the automatic stay must also pay the filing fee required by 28 U.S.C.A. § 1930(b). In the new millennium, airlines have fallen under intense scrutiny for what many see as abusing Chapter 11 bankruptcy as

3024-433: The hotel, RV park, and convention facilities had been used only on an overflow basis for Black Gaming's other resorts when they were fully occupied. In June 2010, Black Gaming announced plans to cease operations of its 16 slot machines, and announced that nearly 400 hotel rooms would remain after demolition. The casino closed that year. In July 2011, Mesquite Gaming LLC took over operations of Black Gaming's resorts, including

3087-428: The imposition of an automatic stay . While the automatic stay is in place, creditors are stayed from any collection attempts or activities against the debtor in possession, and most litigation against the debtor is stayed, or put on hold, until it can be resolved in bankruptcy court, or resumed in its original venue. An example of proceedings that are not necessarily stayed automatically are family law proceedings against

3150-426: The newly reorganized company. All creditors are entitled to be heard by the court. The court is ultimately responsible for determining whether the proposed plan of reorganization complies with bankruptcy laws. One controversy that has broken out in bankruptcy courts concerns the proper amount of disclosure that the court and other parties are entitled to receive from the members of the creditor's committees that play

3213-488: The plan and making it binding on all parties in the case, most notably that the plan complies with applicable law and was proposed in good faith. The court must also find that the reorganization plan is feasible in that, unless the plan provides otherwise, the plan is not likely to be followed by further reorganization or liquidation. In a Chapter 11 bankruptcy, the debtor corporation is typically recapitalized so that it emerges from bankruptcy with more equity and less debt,

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3276-405: The plan and making it binding on all parties in the case. Most importantly, the bankruptcy court must find the plan (a) complies with applicable law, and (b) has been proposed in good faith. Furthermore, the court must determine whether the plan is "feasible, " in other words, the court must safeguard that confirming the plan will not yield to liquidation down the road. The plan must ensure that

3339-425: The plan is a compromise between the major stakeholders in the case, including the debtor and its creditors. Most Chapter 11 cases aim to confirm a plan, but that may not always be possible. If the judge approves the reorganization plan and the creditors all agree, then the plan can be confirmed. Section 1129 of the Bankruptcy Code requires the bankruptcy court reach certain conclusions prior to confirming or approving

3402-419: The plan is a compromise between the major stakeholders in the case, including, but not limited to the debtor and its creditors. Most chapter 11 cases aim to confirm a plan, but that may not always be possible. Section 1121(b) of the Bankruptcy Code provides for an exclusivity period in which only the debtor may file a plan of reorganization. This period lasts 120 days after the date of the order for relief, and if

3465-412: The plan itself. The plan may be modified before confirmation, so long as the modified plan meets all the requirements of Chapter 11. A chapter 11 case typically results in one of three outcomes: a reorganization; a conversion into chapter 7 liquidation, or it is dismissed. In order for a chapter 11 debtor to reorganize, they must file (and the court must confirm) a plan of reorganization. Simply put,

3528-411: The plan, it may nonetheless be confirmed if the requirements of cramdown are met. In order to be confirmed over the creditors' objection, the plan must not discriminate against that class of creditors, and the plan must be found fair and equitable to that class. Upon confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan. If

3591-412: The same period, both due to a decline in tourism. In November 2008, after defaulting on a loan, Black Gaming considered briefly closing one of its three casinos, but the company did not specify which one could close or when the closure could occur. On December 1, 2008, Black Gaming announced plans to temporarily close the Oasis' casino, restaurants and night clubs on December 5, cutting 500 jobs as part of

3654-459: The time, Redd said about the purchase, "I had lost touch with who I was -- my thing was tinkering with machines. I was never really a casino owner. The Oasis was a good idea and it was fun, but it never really was a money maker because it was not managed right." Black took possession of the Oasis on July 1, 2001. The Oasis generated a negative income of $ 900,000 during the third quarter of 2008, while Black Gaming 's revenues dropped 23 percent during

3717-830: Was a member of the Las Vegas Country Club . Redd died on October 14, 2003, in Solana Beach, California. He was 91 years old. His funeral was held at the Palm Mortuary in Las Vegas, Nevada. Chapter 11, Title 11, United States Code Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code ) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy ,

3780-752: Was an American businessman and philanthropist. He was the founder of International Game Technology , a slot machine manufacturer and distributor. He was the owner of the Oasis , a hotel and casino in Mesquite, Nevada . He was the rightsholder of video poker , and he became known as the "king of slot machines". Redd was born on November 16, 1911, in Union, Mississippi . His father was a sharecropper. He grew up in Philadelphia, Mississippi . Redd attended East Central Junior College in Decatur, Mississippi , and he graduated from

3843-405: Was closed in 2010, although the hotel was still used for overflow guests at Black Gaming's other Mesquite casinos. The Oasis was demolished in 2013. The property began in the 1960s, as the Western Village Truck Stop, with 28 motel rooms and 23 slot machines. William "Si" Redd , who founded the slot machine company International Game Technology , purchased the struggling Western Village in 1976. It

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3906-499: Was completed in 1995, which added a few hundred rooms to the hotel. By 1996, the Oasis' amenities included two nearby golf courses. In October 1996, Redd turned over control of the Oasis to his son-in-law, Alan Green, who was named as president and sole director. Redd's daughters, Sarah Green and Vinnie Copeland, were named trustees of the William S. Redd Family Trust, which owned the property. By 1997, management had changed several times at

3969-475: Was renamed Peppermill's Western Village in 1981, and was also known as Peppermill Resort. An expansion was underway in 1984, adding 248 rooms. A new restaurant, gift shop and arcade were later added. The Peppermill was the only casino in Mesquite until 1990, when the Virgin River opened. In 1993, the resort was renamed Si Redd's Oasis. The name Peppermill Oasis was also briefly used in the mid-1990s. A renovation

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