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IN BUSINESS COURTS DRAMA INTENSIFIES FOR LONGORIA AFTER CLUB IS CLOSED DOWN By Steve Green senior staff writer Drama intensified last week at Eva Longoria’s Beso restaurant when investors, alarmed over the closure of Beso’s Eve nightclub, demanded that the Bankruptcy Court appoint a trustee to supervise the business. Beso and Eve, doing business together as Beso LLC, filed for bankruptcy in January. But to date, Longoria and her fellow investors have not filed a plan of reorganization to deal with the firm’s $5.68 million in debt. On July 8, Longoria’s attorney, Robert Shapiro in Los Angeles, sent a letter to parties involved in Beso disclosing that the nightclub would close. “Eve has operated, and continues to operate, at a loss,” the letter says. “We are currently exploring various options to fix this. “Unfortunately, the positive cash flow LAST DANCE AT EVE: Desperate Housewives’ star Eva Longoria’s Eve nightclub, located in CityCenter, closed its doors last week. from Beso continues to be drained in order to keep Eve afloat,” Shapiro wrote. “This cannot continue, as it threatens to bring Beso down as well. Accordingly, we believe it is necessary to at least temporarily close Eve as we continue our efforts in this regard.” Attorneys for Beso LLC investors and creditors Mali and Ronen Nachum— who have been battling Beso for money they claim to be owed—responded with an emergency motion in US Bankruptcy Court for Nevada that a Chapter 11 trustee be appointed. “In 2010, the debtor generated substantial gross income of $14.57 million, with an average monthly gross of $1.166 million,” the motion says. “Conversely, after the bankruptcy filing, the debtor, based upon the monthly operating reports, has allegedly been averaging only $837,517 a month.” “The closing of one of the debtor’s main, if not most important asset, causes serious financial concerns as to the viability of this debtor,” the filing says. A trustee could review Beso’s books and records and determine whether closing Eve made sense and determine how to move forward, the motion says. But an attorney for the high-end Crystals shopping mall, Beso’s landlord at MGM Resorts International’s CityCenter, filed papers opposing efforts to have a trustee appointed. “As its landlord, Crystals is acutely aware of Beso’s partial suspension of business operations within the premises and is in communication with Beso regarding its plans for reorganization and for the future use of the premises,” Crystals’ filing said. “Although Beso has been unable to pay administrative rent accruing under the lease during the pendency of this Chapter 11 case, Crystals has thus far been supportive of Beso’s efforts to reorganize. “Moreover, it is Crystals’ belief and understanding that Beso will soon be able to propose a formal plan of reorganization. Accordingly, Crystals adamantly opposes the emergency motion to appoint a Chapter 11 trustee as it does not believe there to be any basis for the appointment of a trustee.” Crystals was owed $2.276 million when Beso filed for bankruptcy, and since then, “Beso now also owes substantial amounts of unpaid rent and other charges under the lease accruing after the (bankruptcy) petition date,” Crystals’ court filing said. MGM Resorts Foundation Presents August 1 – 3, 2011 Mandalay Bay Resort & Casino, Las Vegas, NV Professional Development Personal Growth Networking Leadership Development Full Conference Registration $150 Student Registration $75; On-Site Registration $175 Visit our website: lvwomenofcolor.com HURTS, DOESN’T IT? It’s funny how powerful fi ve little words can be. And hurtful too. Not all bullying is physical. Some kids aren’t being shoved into lockers. Instead, they’re being made to feel like they’re inadequate and insignifi cant. And sometimes that can hurt a lot more. But with the right resources you can help. Find them and more at fl ipthescriptnow.org. Women of Color Conference Official Airline of 14 072520.01 RRF • “Flip The Script - Bad Parent” Vegas Inc - 6/20 Ad Size: 1/4 pg Box 4.67" x 6.0" • | 18 JULY 2011 | STEVE MARCUS