Bankruptcy Court Judge Mike Nakagawa found several flaws tied to a trust fund created by the American West Development's reorganization plan and denied the plan at a hearing on Thursday, the Las Vegas Review-Journal reported on Friday. American West will have the opportunity to rework provisions, but no timetable was laid out. "We were pleased with the clear direction," said American West President Robert Evans. "We finally have direction about how to clean up the process and get the plan confirmed." Evans said that changes would be incorporated "very quickly," restarting the legal process and a new vote on the provisions. The office of the U.S. Trustee had raised objections to explanations provided to homeowners about how the trust would be funded, plus legal protections granted to people not in bankruptcy, including company founder and owner Lawrence Canarelli.
