Press release from Hoosier Park:
Centaur Takes First Steps in Restructuring Process
â€˜Business as Usual’ for Hoosier Park and Fortune Valley
(Indianapolis, Ind.; Oct. 29, 2009) Â Centaur, LLC continues to work with its lenders to develop a consensual agreement to address its capital structure at the corporate level, reduce its debt load and strengthen its future financial position.
Emphasizing that casino, racing and hotel operations at its existing facilities would continue to serve its customers in a first-class “business as usual” manner, Centaur did not make interest payments to senior lenders on Oct. 27.
Additionally, two of Centaur’s affiliated entities associated with its racing, gaming and entertainment development project in Pennsylvania elected to file voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code yesterday to preserve the status of the Valley View Downs & Casino project. These actions are first steps toward a more comprehensive, company-wide restructuring process.
The company will continue to operate Hoosier Park Racing & Casino in Anderson, Ind., and Fortune Valley Hotel & Casino in Central City, Colo., without disruption while also pursuing the launch of Valley View Downs & Casino in western Pennsylvania.
“Speaking on behalf of Centaur’s existing properties, our commitment to our customers and employees is as strong as ever. We take great pride in providing our guests superior products and exemplary service. We also place high value in our employee’s contributions and role in this effort. Our ongoing dedication to providing an outstanding entertainment experience remains firmly in place,” said Jim Brown, General Manager of Gaming, Hoosier Park Racing & Casino.
“Our business operations at the property level are healthy and generate positive cash flow from operations. We remain committed to putting our capital structure on solid ground. Restructuring our corporate debt will place us in a position for long-term success and benefit our customers, employees, horsemen groups, host communities and other stakeholders. We are confident our steps will ultimately strengthen the company,” said Centaur Chairman Rod Ratcliff.
Numerous companies have filed for reorganization in Chapter 11, including K-Mart, Macy’s, Texaco, and Bloomingdale’s. These companies used the Chapter 11 process to strengthen their businesses and are performing well today.
“This step in Pennsylvania demonstrates how serious we are in clearing the way to get the Valley View Downs project built and operating. It allows the application process to continue and reflects our deep commitment to the project. The reason for this filing is to preserve the status of the Pennsylvania project, advance the restructuring process, and safeguard our gaming application.
“In today’s challenging economic climate, there has been widespread restructuring of debt in our industry. We anticipate that this proactive step on our part to restructure our debt will expedite progress in Pennsylvania,” said Kurt Wilson, Centaur’s Chief Financial Officer.
About Centaur, LLC
Centaur, LLC is an Indiana-based company involved in the development and operation of entertainment venues focused on horse racing and gaming. For more information, visit www.centaurgaming.net.