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Best of Chris Sieroty

Gaming Guru

Chris Sieroty
 

Silver Legacy Casino in Reno seeks to resolve bankruptcy case

22 October 2012

The owner of the Silver Legacy Resort Casino will go before the U.S. Bankruptcy Court in Reno on Monday seeking approval of an agreement to settle its $142.8 million debt with creditors, allowing it to emerge from five months of bankruptcy protection.

Details of the plan were limited Friday. An executive with Circus and Eldorado Joint Venture said in a statement that the deal calls for a $70 million loan from Wells Fargo and second lien notes, which has "overwhelming support" of creditors.

The agreement also keeps the current ownership and management in place, including Gary Carano, CEO of Circus ad Eldorado Joint Venture. The company has operated the Reno resort with 1,800 employees since it opened in 1995 at a cost of $350 million.

"We are very excited that all the litigation in our case has settled," Carano said. "We are looking forward to Silver Legacy's future as a financially stronger company."

The Silver Legacy's parent company is a joint venture between Eldorado Limited Liability Co. and Galleon Inc. Galleon is a wholly owned subsidiary of Las Vegas-based MGM Resort International.