Hard Rock Gets Debt Reprieve

The Hard Rock Hotel in Las Vegas has reached a temporary agreement with lenders to give the financially troubled hotel-casino until Feb. 28 to restructure or extend about $1.25 billion in debt and obligations.

The company reported to the Securities and Exchange Commission that it has entered into a “standstill and forbearance agreement” with lenders, according to the Las Vegas Review-Journal. During the forbearance period, lenders “agreed not to take any action or assert any right or remedy arising with respect to any of the applicable loan documents against the subsidiary borrowers or the collateral pledged under such loan documents.”

The filing followed a threatened foreclosure of the company’s property that was scheduled for Feb. 7 in New York, according to the paper.

In another SEC filing, Morgans Hotel Group, which manages and owns a minority stake in the Hard Rock Hotel, said its chairman has recused himself from any matters involving the hotel-casino because of a “conflict of interest.”

Morgans Hotel Group Chairman David Mamamoto is also chairman, CEO and an equity holder of NorthStar Realty Finance Corp., which threatened the foreclosure.

“In light of these relationships, during the third quarter of 2010, the company implemented special governance procedures, pursuant to which Mr. Hamamoto is recused from all board and management discussions and all board determinations regarding the outstanding Hard Rock debt,” the filing reportedly said.

Matters concerning the Hard Rock debt are being considered by a committee of independent directors of the board, the company said.