Court Approves USA Investment Partners Sale Procedures for Hotel Zoso

LAS VEGAS--(BUSINESS WIRE)--The United States Bankruptcy Court for the District of Nevada today approved motions for affiliates of USA Investment Partners to sell Hotel Zoso and units at the Palm Springs Marquis Villas, both located in Palm Springs, CA.

The “Stalking Horse” asset sale places a minimum value on the Hotel Zoso of $25,117,500 and on the Palm Springs Marquis Villas of $10,829,625. The Hotel Zoso is a luxury 163-room facility which opened in December 2005. The Palm Springs Marquis Villas comprises 101 units, of which a subsidiary of USA Investment Partners owns 63. Affiliates of American Property Hospitality Management, LLC are the court-approved “stalking horse” bidders and have agreed to pay the minimum bids. The deadline for qualified bids is October 9, 2007, and the Court has set October 15, 2007, at 10:30 am to conduct auctions of the properties if competing bids are submitted.

The motion filed by Gordon & Silver, Ltd. of Las Vegas, which represents the Bankruptcy Trustee for USA Investment Partners, Lisa Poulin, states that any purchase agreement will be “subject to a competitive bidding process” with both properties. Gregory Garman of Gordon & Silver said, “We are, of course, pleased with the outcome and expect to immediately engage in the bidding process which we anticipate will culminate with a court auction in the early fall.”

Ms. Poulin said, “We expect a very robust bidding process for these valuable properties and anticipate a smooth transition in the ultimate sale. To that end, we have engaged Jim Matthews, a seasoned real estate professional to manage the sales process.”