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By Chuckmonster on Monday, 27th June 2005 6:19pm
  » filed under Las Vegas  comments: 0

    Follow @vegastripping

The company that bought four downtown casinos last year and devised plans to redevelop the neighborhood with new commercial districts and high-rise condos is in financial trouble, according to several sources familiar with the company. Barrick Gaming Corp. bought the Plaza, the Las Vegas Club, the Western and the Gold Spike from downtown casino operator Jackie Gaughan in March 2004. Regulators have scheduled a public hearing this Wednesday to consider an application by Barrick's landlord and silent partner to "participate in operations." The Gaming Control Board and Nevada Gaming Commission will vote on the application in back-to-back meetings. The landlord, Tamares Barrick Las Vegas Properties, is jointly owned by Barrick and a company called Tamares Las Vegas Properties, which is affiliated with a private investment company called Tamares Group.

Tamares has approached regulators because it wants to be able to loan money to Barrick to keep the casinos operating while Tamares decides whether to install a new management company, sources said.

Tamares put up much of the money for Barrick Gaming to buy the casinos, according to sources familiar with both companies.

Sources say Barrick has been struggling to make debt payments because the interest rate is too high relative to what the properties have been generating.

"Barrick has mired themselves with debt," one source said. "They are way overlevered."

Tamares has the right to remove Barrick if Barrick defaults on its loan to Tamares, according to another source.


[ Uh Oh... could this be where Tim and Tom from the Nugget come in? - Ed ]

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