FX said it would not be able to resolve the default issue by the May 18 deadline and "is considering all legal options, including bankruptcy proceedings" to prevent a sale of the property.

The company announced in late December it had defaulted on the loan from Credit Suisse.

The value of the land had dropped to $218.8 million -- compared with the $221.3 million it cost to acquire the land between March 1998 and May 2005 -- the company's year-end filing shows.

The land stretches from the Harley-Davidson Cafe on the corner of Harmon Avenue and the Strip to the Smith & Wollensky building just north of the MGM Grand. The Hawaiian Marketplace, Travelodge and several novelty shops also occupy the land.

FX generated $19.5 million in revenue in 2008, most in rent from businesses operating on the property. The company announced in September it was abandoning plans for a Elvis-themed resort due to the "dislocation and turbulence in the capital markets."

A licensing agreement between FX and Elvis Presley Enterprises was terminated in early March when FX failed to make a $9 million annual payment.

The company also announced it was voluntarily delisting from the Nasdaq National Market after falling below the required $10 million in stockholders' equity level.

FX has had its stock price fall from its initial offering date high of $10.02 per share on Jan. 10, 2007, to a low of 5 cents per share on March 5.

Shares closed Tuesday at 16 cents per share, giving the company a market capitalization of $8.4 million.

FX had until April 23 to submit a plan to Nasdaq to regain compliance by a late July deadline. However, "based on the company's deteriorating financial position," the company believed it could not regain compliance during that time frame.

FX is a partnership between Robert F.X. Sillerman, whose publicly traded company CKX Inc. owns the name and image of Elvis Presley and the operation of Graceland; hotel developer Paul Kanavos; and residential and commercial developer Brett Torino. The three men control 65 percent of the publicly traded company's stock.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.