The Las Vegas Monorail Company filed for Chapter 11 Bankruptcy Protection amid months of closures due to the pandemic.
The Las Vegas Monorail company joins the growing list of businesses succumbing to Chapter 11 Bankruptcy protection. The occurrence comes as the pandemic continues to drag on, keeping businesses difficult to carry on.
Way back in March, the monorail company shut operations. The reason stemmed from the health crisis when Nevada closed most portions of the economy. Until now, the operations have not resumed yet. The Las Vegas Monorail Company manages key terminals in some of the prominent hotels in the region.
CNN Business reported that the volume of people flocking to transit systems dropped. Meanwhile, operators find increased costs to sanitize their facilities. Transport operators find it hard to see profits, especially that most leisure and hotels also closed.
“As a result, it is in the Las Vegas Monorail Company’s best interest to file for bankruptcy,” the non-profit monorail’s president and chief, Curtis Myles, said.
Advancing the Acquisition
While the company blamed the pandemic for the decision, it also intends to sell the monorail. Myles added that the company should “effectuate a sale of the system assets” to a company that would continue its operations.
Actually, Las Vegas Monorail’s move to file for bankruptcy comes also from the deal to sell the company to Las Vegas Convention and Visitors Authority. The authority’s board of directors bid up to $24.3 million to acquire the monorail company.
After Sixteen Years
In a statement, Myles said: “The Las Vegas Monorail has served a critical mobility need in the resort corridor for over 16 years.”
The monorail also carried “85 million riders during that time.”
Myles mentioned that filing for Chapter 11 will further the transaction to a party that will “help ensure that the mobility benefits the Monorail provides continue during conventions, events, and throughout the year.”