April 7 (Reuters) - Racetrack and casino
operator Indianapolis Downs LLC filed for bankruptcy protection in a Delaware court to restructure its debt.In a statement, the company said although it had strong underlying fundamentals, it had been operating with a significantly higher-than-expected debt burden which it could not service.
Indianapolis Downs said it faced an expiration of a forbearance agreement on its loan after talks with lenders to negotiate a debt restructuring deal failed.
"The debt largely reflects a $250 million initial state-mandated license fee, as well as a high statutory tax rate," Indianapolis Downs said.
The company has lined up debtor-in-possession (DIP) financing of about $103 million from a group led by Wells Fargo to continue operations while under court protection.
In its Chapter 11 petition, the company listed assets in the $500 million-$1 billion range and liabilities in the $100-$500 million range. Indiana Downs Capital Corp, a unit, was also included in the proceeding.
The company operates the Indiana Live! Casino and the Indian Downs racetrack at a 283-acre site in Shelbyville, Indiana. It employs about 1,100 people during normal operations and about 1,300 people during racing season.
The case is In re: Indianapolis Downs LLC, U.S. Bankruptcy Court, District of Delaware (Delaware), No: 11-11046. (Reporting by Santosh Nadgir; Editing by Jarshad Kakkrakandy)
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