Visitreno

[Shooty]

Chapter 11, yesterday.

http://www.vegasinc.com/news/2012/may/17/reno-casino-bankruptcy/

[Zydeco]

Yep. Not surprised, but bummed.

[JD]

I would have pulled the story from the Reno Gazette Journal, but I've used up my 10 "free" looks.

I think they might be next.

I'll wager the SL boss tried his best to put lipstick on that pig.

[Mammothgambler]

wow, that's something! I was kind of just starting to grow rather fond of it...and actually left up $400 there this afternoon!

Mammothgambler

[JD]

Latest "NEWS" on Sam Fairchild's bankruptcy:

http://www.rgj.com/article/20121018/BIZ04/121018014/Silver-Legacy-Reno-reaches-agreement-resolving-bankruptcy-case

(Since RGJ is not available to everyone, I cut and pasted the entire piece... and it's STILL not as long as Mamouth gambler's pictures.
-------------------

Silver Legacy in Reno reaches agreement resolving bankruptcy case
9:12 PM, Oct 18, 2012


The owner of Reno’s Silver Legacy Resort Casino Thursday reached an agreement to settle its $142.8 million debt with creditors and emerge from five months in bankruptcy protection.

Details of the plan, which will go before the U.S. Bankruptcy Court in Reno on Monday for approval, were limited.

In a news release, officials said it calls for a new $70 million loan that with cash and new second lien notes has the “overwhelming support” of the hotel-casino’s creditors.

In addition, the agreement keeps the current ownership and management structure in place, led by Gary Carano, CEO of Circus and Eldorado Joint Venture which has operated the 35-story, 1,700-room complex since it opened in 1995 at a cost of $350 million.

“We are excited that all the litigation in our case has settled ... we are looking forward to Silver Legacy’s future as a financially stronger company,” Carano said in the news release announcing the agreement.

The resort has operated under court protection since Circus and Eldorado Joint Venture filed for Chapter 11 bankruptcy on May 17, more than three months after announcing it could not pay the $142.8 million debt by the March 1 due date.

The debt is part of a $160 million loan originally issued in 2002 at an interest rate of 10.125 percent, and progress in negotiations prompted three deadline extensions before bankruptcy was filed.

Officials have blamed the long downturn in Northern Nevada’s gaming industry largely on the proliferation of tribal casinos in California as well as the more recent economic recession. Together, those factors have helped shrink Reno-Sparks gaming revenues by one-third in the past decade, according to state Gaming Control Board data.

Assuming the agreement is cleared by the bankruptcy court next week, the settlement assures the standout structure on downtown Reno’s skyline will remain a cog in the region’s economy, said longtime Reno gaming expert Bill Eadington.

Despite the challenges to the area’s gaming industry, Eadington cited continued positive cash flow — revenues minus expenses and other adjustments — a line item considered a key gauge in assessing a casino’s operational health.

PAGE 2

So the bankruptcy resolution is best for all parties concerned, he said, and in the Silver Legacy’s case, a settlement coming after five months is fast.

“These things can take years, so the quicker you get out, the better. If you don’t, fees start eating up your value,” he said. “A resolution is always better than if a property closes. Then nobody wins.”

He added, “The Silver Legacy is an iconic property for Reno. It’s the biggest and the most attractive at night. If it closed, it would be a disaster.”

Eadington said Thursday’s announced settlement “sounds like a fairly reasonable outcome.” He added, “The real challenge is, the property isn’t worth than about $90 million, so depending on the creditor, they might get 70 cents back on the dollar.”

Carano was not available Thursday for comment beyond the news release. But he praised the partners in Circus and Eldorado Joint Venture, Reno’s Carano family and Circus Circus, an affiliate of MGM Resorts International, as well as the Silver Legacy’s 1,800 employees.

“(They) have demonstrated their commitment to the Reno community throughout this process,” Carano said in the news release. “It is a great day for Silver Legacy.”

Owners of the Silver Legacy Resort Casino today said a settlement agreement has been reached with creditors in its Chapter 11 bankruptcy protection filing earlier this year.

2:05 p.m. update:
In a news release, officials said the agreement calls for its unsecured creditors to be paid in full and its chief creditors to get a combination of cash from the owners, Circus and Eldorado Joint Venture and its partners, and borrowings from a new $70 million loan as well as new second lien notes.

The plan will be go before the U.S. Bankruptcy Court in Reno on Monday.

“We are looking forward to Silver Legacy’s future as a financially stronger company,” Gary Carano, CEO of Circus and Eldorado Joint Venture, said in a statement.

[Mammothgambler]

WOW! I just applied there for a graphic design position. Maybe it's a blessing in disguise I haven't heard back yet - last thing I need is to get in another work environment that's having financial trouble! Looks like we'll know how things are going Monday. I'm hoping they'll pull through. And JD - thanks for the complete posting from rgj.com. Sad that you gotta pay to read the news online these days!

Mammothgambler

[JD]

You can do a cookie cleanup and start with a clean slate and ten "FREE LOOKS" but it's kind of a hassle.

And these casino bankruptcies sometimes take YEARS to have much of an effect on the average worker bee. Top management might shake up a bit, but unless it's an OLD property that someone wants for a parking lot (like PIONEER) or a Condo (like Comstock, Colonial, Flamingo Hilton) the casino often just changes a logo and continues operation.

IF you're offered a SL job, I'd grab it. And you could look well informed if you ask them why they are now downplaying the "SAM FAIRCHILD" character in much of their early promotion (see my avatar) . Besides, SL has (in MY opinion) the best looking cocktail waitresses in Reno.

I just find it odd a "successful " business would BORROW $ 160 million in 2002 at 10% interest , make payments for 10 years( $ 16 million/year x 10 years= $ 160 million), operate at a profit, always be busy, and STILL OWE $ 143 million ten years later!

I suspect the executive compensation is designed to insure that "LOAN" is never paid off. I wonder who holds that 10% LOAN ANYWAY?

[Mammothgambler]

Right on JD, yes, I don't understand the loan logistics on some of these businesses. Out 20 bazillion grand? Let us give you 20 bazillion more...and 20 bazillion more on top of that for the interest you'll be paying...

Oh yeah, seriously hoping I hear back from the SL - I met all the requirements for the position, but I get kinda panicky in situations where anybody's in financial trouble - I've lived through it with a total of 4 different employers since I began working full-time at age 15. Although it could take years for the changes to take effect, as you mentioned, my bigger concern is the day-to-day things you have to go through as an employee when someone's in trouble. My last gig at the newspaper in Mammoth was a prime example - hearing the phrases, "it's all about revenue" and "we've got more layoffs planned" day in and day out for 4 straight years was sounding like a broken record. What's worse is that the situation never improved - every tactic in the world only got them further in the hole!

Anxious to see how it all turns out. I think I mentioned it in a previous post, but if it goes bad there at the SL, I'm going to hit them up to see if I can at least buy a couple of their Blazing 7s machines. Thanks for the info!

Mammothgambler

[stan_allen]

Sad, indeed, but not exactly a suprise.

I've defended the SL over the years, but then again, I switched my preferred hotel to the El Dorado, so I can't exactly claim the moral high ground.

Here's a big issue: Why should one settle for a ninety-degree view from one's hotel when any other building, even with a not-great view, would at least give you a hundred and eighty degrees of view??

Of course, "View" is not supposed to matter much to a gambler, but still....

Oh, and SL didn't offer in-room coffee, where El Dorado does.

Sorry, SL!