Crying all the way to bankruptcy

All that glitters is not gold for the foundation behind the now-shuttered Liberace Museum in Las Vegas.

There was nothing flamboyant about the Liberace Foundation for the Performing and Creative Arts' filing for Chapter 11 on Wednesday, Oct. 24, in the U.S. Bankruptcy Court for the District of Nevada in Las Vegas.

The filing comes after shooting on the HBO movie, "Behind the Candelabra," a biopic about the famed entertainer, started in Las Vegas in August. It also comes about a month after U.S. Bank NA sued the Liberace Foundation, asserting that the Las Vegas nonprofit organization had been in default on a $1.9 million loan since February.

The bank on Sept. 19 filed a complaint in the U.S. District Court for Clark County in Nevada requesting the appointment of a receiver, stating that the Las Vegas property securing the debt "is in danger of substantial waste" and that rental income from the real estate "may be lost or ... insufficient to discharge the debt which it secures."

The Liberace Foundation on May 15, 2000, borrowed $1.9 million from Wells Fargo Bank NA, secured by the land, which includes a commercial shopping center.

Wells Fargo subsequently assigned the debt to LaSalle Bank NA as trustee for the registered holders of Bear Stearns Commercial Securities Inc., Commercial Mortgage Pass-Through Certificates, Series 2000-WF2. Court papers show Bank of America NA was successor by merger to LaSalle, with the debt ultimately assigned to U.S. Bank on Sept. 13.

Under the terms of the loan, the Liberace Foundation had agreed to make monthly payments servicing the debt from June 1, 2000, through June 1, 2020, which it had failed to do since the February payment.

The lender issued a notice of default on Aug. 21.

The foundation once operated the Liberace Museum in Las Vegas, which displayed mementos from the entertainer's storied 50-year career. The facility closed its doors in October 2010 due to declining revenue.

Founded in 1976, the famed pianist's foundation has awarded more than 2,700 arts students with college scholarships.

The entertainer, called Mr. Showmanship due to his over-the-top costumes and glitzy stage persona, established himself as a Las Vegas mainstay in the 1950s with his nightly show at the Riviera Hotel and Casino.

The pianist, known as "The Glitter Man," performed for the last time at New York's Radio City Music Hall on Nov. 2, 1986. The show -- the vocalist's 18th in 21 days -- marked the end of a series of performances that grossed $2.5 million.

The entertainer, born Wladziu Valentino Liberace, died of pneumonia caused by AIDS on Feb. 4, 1987, in Palm Springs, Calif.

Michael Douglas is playing the entertainer in the HBO movie, which the Liberace Foundation hasn't endorsed but has supplied with automobiles and other personal effects. The made-for-television movie will be based on an autobiographical novel written by Scott Thorson called "Behind the Candelabra: My Life With Liberace" about his alleged five-year romantic relationship with the pianist. (Matt Damon will play Thorson in the film.)

Thorson had in 1982 sued Liberace for $113 million in palimony after the singer fired him. Thorson alleges the late performer hired him in 1976 to serve as his chauffeur and companion.

The case was settled out of court in early 1987 with Thorson reportedly receiving $95,000.

In its petition, the foundation reported $1 million to $10 million in liabilities.

The debtor's assets, mainly memorabilia such as pianos and costumes, are valued at $13 million.

Calls to the Liberace Foundation, debtor counsel, Las Vegas solo practitioner Nedda Ghandi, and counsel to U.S. Bank, Ann Marie Hansen of Ballard Spahr LLP, were not returned Thursday.