The parent company of the Riviera Hotel Casino in Las Vegas has filed for chapter 11 bankruptcy. This turned out to be a bad bet for equity holders who will be wiped out and receive nothing.
{Riviera Holdings} along with certain of its subsidiaries announced that it has filed for protection under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Nevada in Las Vegas. The Company has filed its bankruptcy case in conjunction with a restructuring and lock-up letter agreement entered into with certain senior secured lenders holding over a majority in amount of secured creditor claims under the Company’s $228,000,000 Credit Agreement dated as of June 8, 2007, and corresponding secured hedging agreement. Through bankruptcy, the Company anticipates that it will be able to restructure its indebtedness, provide for investment of new capital into the Company, and emerge in an improved financial and operational position.
Under the terms of the restructuring and lock-up letter agreement, the equity holders’ interests in the Company will be canceled and will receive no distributions. (Source: news wire services)
Investors in the company would have probably done better to just put it all on the roulette wheel.
And while on the topic of casinos, the latest figures on casino revenues :
Nevada Gaming reports May casino revenue $847M -4.7% y/y; Las Vegas strip -6.4% y/y.
New Jersey reports June casino revenue $286.8M; -11.1% y/y
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