Anyone know the financial situation of Reno Silver Legacy casinos?

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??

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.

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.

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.

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.

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.

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.

Bad link. Sorry. Try this one.