the first and second mortgages of the Dunes from Valley Bank and First Security Leasing, the Dunes' two major creditors. Later in 1987, Hilton Hotels and Japanese investor Masao Nangaku both considered buying the Dunes. Foreclosure was delayed to allow more time for a possible purchase. Hilton offered $122.5 million, and planned to refurbish the existing rooms while adding a third tower, at an additional cost of $110 million. Cohen believed that the resort needed 2,000 hotel rooms to adequately compete with other resorts. Kerkorian re-emerged as a prospective buyer, and Sheldon Adelson also considered purchasing the 163-acre resort. Nangaku ultimately prevailed, offering a $157.7 million bid in August 1987. His purchase was finalized four months later. While Nangaku waited to receive a gaming license, he hired Dennis Gomes to operate the Dunes, replacing Cohen as president. Nangaku underwent an unusually long gaming control board probe. Investigators suspected that unlicensed people from Nangaku's company, Minami Group, were involved in the resort. The control board encountered difficulty when looking into Nangaku's business associates because of differences in how Japan handles documents, which are generally kept confidential. Investigators also suspected that the associates were making attempts to hinder their efforts. In December 1988, Nangaku received a limited two-year gaming license while investigators continued their probe. Nangaku planned up to $280 million in renovations, including a new hotel tower and the demolition of the original motel-style structures, although little work had been done by mid-1989. He blamed the limited gaming license, stating that financiers were hesitant to lend money because of uncertainty about whether he would remain licensed in the near future. The first phase of Nangaku's multimillion renovation eventually began in September 1989. The following year, Nangaku announced a planned $200 million remodeling project. He also hired the architectural firm Hellmuth, Obata & Kassabaum to design the new high-rise tower. Nangaku eventually received a permanent gaming license in May 1991, at which point he was seeking a partner to help renovate and operate the Dunes. The resort had laid off hundreds of workers that year, due to financial troubles brought on by the early 1990s recession. Despite Nangaku's expansion plans for the resort, he ultimately invested only $12 million in basic repairs. The Las Vegas Review-Journal had written in 1988 that the Dunes had lost its "mystical luster" over the past 20 years, with its high rollers migrating to "more attractive" resorts.