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Bluhm makes case for proposed license transfer

"Approve his group's proposed takeover of the Pittsburgh casino and construction of the stalled $780 million project could resume Monday, bolstered by $200 million in equity.

"Reject the bid and the casino likely will end up in a 'messy' bankruptcy, its fate uncertain.

"During a meeting with the Pittsburgh Post-Gazette editorial board and at a news conference yesterday, Mr. Bluhm made his case for the proposed transfer of the city's sole slots license from Don Barden to his group, Pittsburgh Gaming Holdings.

"A gaming board hearing and possible vote are today.

"If the board approves the deal, Mr. Bluhm said his group is prepared to close on nearly $600 million in financing as soon as tomorrow, and that workers would be back on the job Monday for the first time since June 30.

"He also disclosed that Pittsburgh Gaming had increased its equity stake in the project by another $30 million, to $200 million. It originally proposed a $120 million investment but has since raised it twice to cut the amount of debt involved, particularly with high interest rates, and to give the project a greater financial cushion.

"...Repeating an earlier warning, Mr. Bluhm said the casino is all but certain to end up in bankruptcy if the deal is not approved..."

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