Casino operator MGM Resorts International won the latest round of their fight against nightclub owner Rumjungle Las Vegas LLC when a bankruptcy judge dismissed the club’s reorganization case on the grounds that the bankruptcy was an attempt to circumventing MGM’s contractual rights to evict.
The Las Vegas casino resort, Mandalay Bay, has been entangled in court litigation since 2008 with Rumjungle and its sister business the Red Square Restaurant at the resort over a breach in the lease contract.
In an attempt to prevent eviction, Rumjungle Las Vegas LLC filed for Chapter 11 bankruptcy reorganization claiming they owed the resort $1.1 million in back rent.
The “$1.1 million Mandalay claim is a fabrication made by Rumjungle in its hopes of circumventing Mandalay’s contractual and state law rights,” charged the attorneys for Mandalay Bay.
On Thursday Judge Mike Nakagawa sided with Mandalay Bay in the dispute and closed the Rumjungle bankruptcy case, which will allow MGM to move forward with the eviction process.
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