About $400,000 of the money will be used to relocate Four Square Baptist church, part of the land acquisition agreement.

The motion for postpetition financing from CapSource was news to Edward McDonald, Department of Justice attorney representing the U.S. Trustee. He spent an hour asking the principals of Slade Development, Stacy Slade and his son, Chad, about the project's financial and construction status.

The first building is near completion with model units, the second building has Sheetrock and roofing and the third building is mostly just studs and framing, Stacy Slade said.

Building permits are in place with the city of Henderson but not currently active, he said.

Cost-cutting measures such as staff reduction and "value engineering," or revisiting material and construction costs, are in place, Slade said.

Attorney Brett Axelrod of Greenberg Taurig, representing lender R.E. Loans, grilled Chad Slade about his $70 million assessment of the value of land and improvements at Vantage Lofts, as well as a proposal for a zoning change to mixed-use development.

Slade said his number is based on a sales price of $250 to $400 a square foot for more than 68,000 square feet of living space in the first building.

Axelrod asked if any of the 22 buyers who signed executory contracts want to cancel.

Chad Slade said there were 10 to 15 of those buyers who want out, but it's a legal issue as to whether they can get their money back. About 20 percent of the deposits, or $250,000, remains in escrow with Equity Title and the remaining money was used for construction expenses, he said.

"This is a case of mathematics, and it's dead on arrival," Axelrod said. "They've got in excess of $69 million in debt and $40 million in equity. It would be better to let it convert to Chapter 7."

Stacy Slade is disputing a portion of the $6 million in mechanics' liens placed on the property by subcontractors who haven't been paid. There's duplication among a lot of the liens and some of the electrical work did not pass code inspections, he said.

Vantage Lofts borrowed about $36 million from Scripps Investments and Loans, and $33 million from R.E. Loans. Vantage filed for bankruptcy protection in June to stop foreclosure by the senior lender.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.