Management of the Cal Neva Resort Spa Casino at Lake Tahoe is being taken over by a court-appointed receiver until its current owner pays back a $25 million loan or the resort once owned by Frank Sinatra is sold at a foreclosure sale.

The Delaware-based Canpartners loaned the $25 million to the owner, Namcal, in November 2007 with the hotel-casino property put up as collateral.

Fildelity National Title Insurance Company filed a default notice on behalf of Canpartners with the Washoe County Recorder's Office about two months ago.

A Las Vegas lawyer representing the lender says the move is being made because Canpartners wants to keep the hotel and casino operational. Mark Dzarnoski says they felt the property was in danger of waste and loss and didn't have sufficient financing to continue operating.

Under Nevada law, Canpartners can sell the Cal Neva three months after serving the notice of default.

(Copyright 2009 by The Associated Press. All Rights Reserved.)