UPDATE: On Wednesday, the Las Vegas Convention and Visitors Authority announced that they acquired the Las Vegas monorail after the company filed bankruptcy.
United States Bankruptcy Court approved the sale on November 24.
The LVCVA's monorail purchase is preserving an important transportation option in Las Vegas and paves the way for it to operate in the future.
LVCVA is scheduled to discuss the purchase during the December 10 Board of Directors meeting.
LAS VEGAS (FOX5) -- The Las Vegas Monorail Company filed for Chapter 11 bankruptcy, the company announced Monday.
According to a statement to media, the company "filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Nevada."
The filing was approved by the company’s Board of Directors.
“The Las Vegas Monorail has served a critical mobility need in the resort corridor for over 16 years, carrying over 85 million riders during that time. Like many other companies, we were forced to shut down on March 18 due to the COVID-19 pandemic and are not yet able to reopen,” said Curtis Myles, president & chief executive officer, in a written statement. “As a result, it is in the Las Vegas Monorail Company’s best interest to file for bankruptcy and effectuate a sale of the system assets to a party who intends to keep the system in operation and help ensure that the mobility benefits the Monorail provides continue during conventions, events and throughout the year.”
The Monorail is in a sales agreement with the Las Vegas Convention and Visitors Authority, "which the Monorail will submit to the bankruptcy court pursuant to an auction sale during which other qualified bidders can participate," the statement said.
On Sept. 1, the Clark County Commission unanimously approved the Las Vegas Convention and Visitors Authority's request to acquire the Las Vegas monorail.
The deal would allow the LVCVA to manage the monorail and have exclusive rights to its route. Currently, the 3.9-mile monorail runs from the MGM Grand on the Las Vegas Strip to Sahara on the north end of the Strip. Included is a stop at the Las Vegas Convention Center, managed by LVCVA.
According to LVCVA, the $24.6 million acquisition would "preserve a key transportation solution for business and leisure travelers in Las Vegas."
This is a developing story. Check back for updates.