Home » VT News » Riviera Files For Chapter 11 Bankruptcy

Riviera Files For Chapter 11 Bankruptcy

By Chuckmonster on Monday, 12th July 2010 5:52pm
  » filed under Mergers & Acquisitions  comments: 4

   

The Riviera's parent company, Riviera Holdings Corp. has filed pre-packaged Chapter 11 bankruptcy earlier this afternoon.

Riviera Holdings owns and operates the Riviera Hotel & Casino in Las Vegas and the Riviera Black Hawk, one of 25 casinos located in Black Hawk, CO..

Recently, the Riviera Las Vegas was target of takeover rumors Starwood Hotels Group and a lustful overture from former Cosmopolitan honcho/dreamer Ian Bruce Eichner a year or so before he defaulted out of the project.

The Review Journal is reporting that 75% of the debt holders have signed onto the pre-packaged bankruptcy agreement, removing much of the chance that the Riviera could be the target of a semi-hostile buyout.

Here's the official statement:

After extensively considering various alternatives and consulting with our advisors, we have concluded that the Company and its customers, employees and creditors are best suited at this time by proceeding with these Chapter 11 filings. By agreeing with our secured lenders in advance, we will be able to proceed with an expeditious restructuring through bankruptcy which will provide us with a viable capital structure, as well as additional financing.

We, like many others in the gaming industry, have been affected by the current economy. However, both our Las Vegas and Black Hawk properties are generating positive free cash flow and this, combined with our cash balances, will help insure that we continue to pay all our operating costs on a timely basis and fund maintenance capital expenditures. There will be no effect on our employees, vendors, and most importantly, our customers.

Furthermore, our ability to reach a mutual agreement with our lenders as to the restructuring provides us with a great advantage that most debtors in bankruptcy are not so fortunate to have. It is our expectation that the Chapter 11 cases will proceed before the Bankruptcy Court in a prompt manner. We believe that by restructuring our debt in coordination with our lenders we will emerge with a capital structure which will enable the Company not only to survive, but to grow as the economy recovers.

We appreciate all of the hard work that our management and employees have provided and will continue to provide in helping us move forward towards this bright future. We are grateful that our working relationships with our suppliers, vendors, and other parties remain resolute. Finally, we thank all of our customers who have supported us; providing an outstanding service experience to them remains our highest priority.



Tagged: riviera   bankruptcy   





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Comments & Discussion:

Considering the last time I walked into the Riviera I felt the immediate need to go back outside I was sort of hoping someone would put the place out of it's misery.

(Taps)

A few years back, I was in the Riviera and happened upon a makeshift Liberace "museum" they'd set up in one of the main casino walkways. It consisted of - and I swear I'm not making this up - two 4x8 sheets of plywood that someone had painted white and attached together in a "sandwich board" configuration. Stapled directly to the plywood were unframed, random pictures of Liberace. The pictures appeared to have been culled from a Google "images" search, and printed out on a Lexmark inkjet with a lazy red cartridge.

I believe this was orchestrated by Starwood which now owns about half of the Riv debt. I would expect Starwood has a plan for rennovating the Riv, but is waiting for bankruptcy court approval before making an announcement.

Aside, has anyone visited the new Queen Victoria's Pub at the Riv?



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