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Progressive Gaming files to liquidate

23 March 2009

LAS VEGAS, Nevada -- Progressive Gaming International, which saw substantially all of its assets sold to International Game Technology in a foreclosure sale in January, formally filed for bankruptcy liquidation this week.

The company, which provided gaming systems and other technology to casinos, owes more than $5.6 million to unsecured creditors, according to a Monday filing with the U.S. Bankruptcy Court in Nevada. Progressive Gaming said it had assets of $263,600.

The largest amount claimed by an unsecured creditor is $1 million owed to Hasbro Inc., stemming from a lawsuit the toymaker settled with Progressive in 2007. The bulk of what Progressive owes is for professional services, such as attorneys, accountants and consultants, as well as other corporate expenses. IGT has claims for $322,000, Harrah's Entertainment is seeking $101,000, and Gaming Laboratories International is seeking $244,000.

All of Progressive Gaming's board members are listed as unsecured creditors, seeking payments of between $2,000 and $21,000. The company's board voted Jan. 26 to be liquidated.

Progressive Gaming was forced into a foreclosure sale when it failed to meet a payment deadline in January on $17 million it owed to Private Equity Management Group of Irvine, Calif.

IGT acquired the bulk of the company's assets for $16.3 million and planned to merge the global operations of Progressive Gaming with its offices. IGT had loaned Progressive Gaming $15 million last August through a convertible note. The companies had other technology-related joint venture agreements.

At the time of the foreclosure sale, Progressive Gaming owned patents for casino management systems that were connected to 70,000 slot machines worldwide. The company earned revenue through the sale of the software and hardware associated with the systems and maintenance agreements.

Progressive Gaming was formed in 1986 as Mikohn Gaming Corp. The company sold its slot machine and table game businesses and became a pure gaming technology company but never recovered from a financial meltdown in 2007. Its stock price fell almost 75 percent and wiped out some $200 million in market capitalization.

The majority of Progressive Gaming's upper management left the company last fall.

According to its most recent quarterly earnings report, Progressive had losses of $63.6 million for the three months ended Sept. 30 on revenues of $13.7 million.

Progressive Gaming files to liquidate is republished from