Canyon Capital Realty Completes Greek Isles Foreclosure

Intends to Keep the Property Open While Assessing its Future

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. August 21, 2009

LAS VEGAS, NV, August 19, 2009 - Affiliates of Canyon Capital Realty Advisors ("Canyon") and Spectrum Group Management LLC ("Spectrum") have completed the foreclosure process on the Greek Isles Hotel and Casino located just off the Strip in Las Vegas, and immediately announced their intent to keep the property open for business while assessing the hotel and casino's future.

In July 2007, Canyon and Spectrum provided a $56 million loan to the borrower for the $83 million purchase of the property, formerly known as the Debbie Reynolds Hotel and Casino. The borrower had originally planned to sell or redevelop the property, but due to constraints in the capital markets, was unable to raise the necessary funds to undertake the development. At its peak, the property was appraised at $120 million. The borrower defaulted on the loan, and Canyon and Spectrum filed for foreclosure in December of 2008.The foreclosure process was completed on Monday, August 10.

Jackie Gaughan opened the Royal Inn Casino in 1972. It operated as the Paddlewheel for several years, then in 1993 Debbie Reynolds acquired the property. In 1999 the hotel was sold to the World Wrestling Federation. The WWF sold it to Mark IV Realty Group in 2000. Mark IV partnered with Delta Airlines and United Airlines to turn it into a crew hotel in 2001.

"We are now focused on assessing the property, and developing a plan to move forward," said Canyon Senior Director Richard Bosworth. "We want to make it clear that ownership is committed to keeping the Greek Isles Hotel and Casino open for business as we determine the next steps for the property."

Peter Locke, a Principal at Spectrum added, "Although the current environment in Las Vegas is challenging, the property's exceptional location, as evidenced by its proximity to the proposed Convention Center expansion and recent hotel/casino developments on the north-end of the Strip, should provide the new owners with significant upside potential through a redevelopment or repositioning of the hotel as the market recovers."

The 202-room Greek Isles is uniquely situated within walking distance of both the Las Vegas Convention Center and the famous Las Vegas Strip. The resort caters to both business and leisure guests. The hotel features banquet and meeting space, a casino, an outdoor pool/spa, a wedding chapel, 24-hour bar and lounge, as well as a fitness room. The property also boasts a Broadway-quality 450-seat showroom and two smaller theaters with nightly shows and a Karaoke lounge.

Both Canyon and Spectrum are highly-experienced investors in the hotel and casino industries, with successful investments in markets throughout the country, including Nevada. The firms will draw on their deep relationships and experience in the hospitality industry to develop a game plan that will maximize the value of Greek Isles.