The Church at South Las Vegas has filed for Chapter 11 bankruptcy after its lender refused to negotiate.
The church owes First Bank of St. Louis $7.7 million on a building now worth $2.4 million.
The church’s attorneys wrote in the filing,
“Given the vast difference between the outstanding principal balance of the note and the present value of the real property and the source of funding as voluntary donations of church members, it is simply impossible for the church to continue to sustain the monthly note payments of $51,929 and at the same time raise building donations for necessary expansion.”
According to Vegasinc., “In a June 21 response, attorneys for the church indicated the church had strategically defaulted on the mortgage after learning its real estate – a 23,635-square-foot office building housing the church…”