susluss
susluss
Joined: Jul 7, 2011
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March 27th, 2012 at 10:40:04 PM permalink
Having moved to Sacramento from LA, I've been hanging out in Reno more than Vegas. Reno has been much more generous with the comps compared to Vegas or CA Indian casinos. So, my favorite hangout is now Reno.
Heard about Silver Legacy filing for bankruptcy. Anyone know the latest of whether Silver Legacy will continue or close??
fremont4ever
fremont4ever
Joined: Nov 24, 2009
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March 27th, 2012 at 11:32:54 PM permalink
According to the Reno Gazette-Journal, the casino and the creditors are working on a debt restructuring. They have until April 30 to finalize it.

Even if they do go to Chapter 11, nobody wants it to close, so it's probably not going to happen.
reno
reno
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March 29th, 2012 at 4:26:19 PM permalink
Obviously the entire Reno/Tahoe casino market has been devastated by CA's Indian casinos, but I still find it surprising to read that the Silver Legacy is doing so poorly. I was there on a Saturday night a few weeks ago, and the Legacy was very CROWDED. I visited Harrah's Reno the same night, and the place was an empty ghosttown.
pacomartin
pacomartin
Joined: Jan 14, 2010
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March 29th, 2012 at 7:21:50 PM permalink
Quote: susluss

Having moved to Sacramento from LA, I've been hanging out in Reno more than Vegas. Reno has been much more generous with the comps compared to Vegas or CA Indian casinos. So, my favorite hangout is now Reno.
Heard about Silver Legacy filing for bankruptcy. Anyone know the latest of whether Silver Legacy will continue or close??



As you may know MGM resorts owns Circus Circus and 50% share in Silver Legacy. It sounds like the problem is that the mortgage is due, and they are having trouble refinancing.

Quote: mgm annual report


Investment in Silver Legacy. Silver Legacy has approximately $143 million of outstanding senior notes due in March 2012. Silver Legacy is exploring various alternatives for refinancing or restructuring its obligations under the notes, including filing for bankruptcy protection. We reviewed the carrying value of our investment in Silver Legacy as of December 31, 2011 and recorded an "other-than-temporary" impairment charge of $23 million to decrease the carrying value of our investment to zero. We will discontinue applying the equity method for our investment in Silver Legacy and will not provide for additional losses until our share of future net income, if any, equals the share of net losses not recognized during the period the equity method was suspended.

renoinsider
renoinsider
Joined: Apr 1, 2012
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April 1st, 2012 at 10:45:19 AM permalink
It is sound. It is one of the best and busiest casino's in Reno, and they are close to completing the refinancing of their debt. CPA firms require companies to post a lot of things in their public filings that are "worst case scenarios" since the Enron and MCI debacles. The RGJ reported several letters from the GM stating "positive cash flow" and actually their public filings show a very stable cash flow and profitability. This is nothing more than the same thing individuals do when they modify their mortgages to stay in their homes...you have a job, you have good cash flow, but you can't pay your mortgage off all at once. Even more, your house is now worth half of what it was so you'd like to knock a little off of the principal.
fremont4ever
fremont4ever
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May 20th, 2012 at 1:13:20 AM permalink
It's official: Silver Legacy has gone to Chapter 11. This doesn't change much; they're still in negotiations about debt restructuring and they plan to stay open.
teddys
teddys
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May 20th, 2012 at 6:27:36 AM permalink
Quote: fremont4ever

It's official: Silver Legacy has gone to Chapter 11. This doesn't change much; they're still in negotiations about debt restructuring and they plan to stay open.

Is this the first casino to go into Chapter 11? The article said Stations were the last one, and Siena too. I think Hard Rock and Hooters in Vegas did an outside-the-courts agreement with their creditors.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
fremont4ever
fremont4ever
Joined: Nov 24, 2009
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May 20th, 2012 at 7:53:09 AM permalink
Bad link. Sorry. Try this one.

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