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Mississippi Casino Struggles to Pay Suppliers23 August 2002BILOXI, Mississippi —As reported by the Biloxi Sun Herald: "Key suppliers to the President Casino on the Admiral are threatening to stop providing goods and services unless overdue bills are paid soon, a company executive said Thursday. "The President, which is operating under bankruptcy protection from creditors, must meet its obligations to certain `critical vendors' to retain them as partners, said Ralph Vaclavik, senior vice president and chief financial officer. "Vaclavik outlined the President's situation Thursday at a meeting with Bankruptcy Trustee Ron McAlpin and representatives of some of the company's major creditors. "…That list includes the agency that buys advertising for the President and companies that provide coin-counting equipment, slot-machine components and other items the casino needs to function, Vaclavik said. "The President Riverboat Casino-Missouri Inc. filed for protection under Chapter 11 of the Bankruptcy Code in June, after bondholders sought to foreclose on the Admiral to satisfy past-due debts. "…In its initial filing with the Bankruptcy Court, President Riverboat Casino-Missouri listed assets of $37.5 million, mainly equipment and fixtures aboard the Admiral and cash used in the casino's operations. "It listed liabilities of $238.3 million. However, nearly all of that amount represents a claim by another President subsidiary that says it is owed the money for advances it made to the casino over the years. "The casino said in the filing that it owed Turec Advertising Co. in Olivette $133,154. Turec places advertising for the boat and was among vendors that Vaclavik said were threatening to stop doing business with the company. "At the meeting, Vaclavik also cited Material Sales Co. of St. Louis, which was owed $58,903, and T.E.A.M. Scaffolding Systems of Wright City, which was owed $24,058. Those two companies help keep the Admiral open during periods of high water. "…Bill Leech, a lawyer for two big creditors -- SunAmerica Inc. and McKay Shields LLC -- asked Vaclavik why, given its predicament, President was seeking emergency authorization to make $50,000 in political contributions. "Vaclavik noted that legislatures in Illinois and Indiana recently increased taxes on casinos in those states, and company executives had heard rumblings about the same possibility in Missouri…" |