Restructuring of debt by Centaur, LLC, the parent of Hoosier Park, will have no impact on racing operations at
Hoosier.
The move is intended to help Centaur financially in its seven-year effort to build its Valley View Downs harness track and racino in western Pennsylvania near the Ohio line.
Rod Ratcliff, chairman of Centaur, said, “our business operations at the property level are healthy and generate positive cash flow from operations. We’re mainly 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’s groups, host communities and other stakeholders. We are confident our steps will ultimately strengthen the company.”
Backing those statements were Hoosier’s application for its harness dates for 2010, along with those of Indiana Downs. The Indiana racing commission is due to award dates December 4, and Hoosier and Indiana Downs both are looking forward to continued first-class racing with extremely attractive slots-bolstered purses next
year.
The restructuring moves in Centaur seeking reorganization in Chapter 11 bankruptcy are not unique. Major firms like K-Mart, Macy’s, Texaco and Bloomingdales have used the Chapter 11 bankruptcy process to strengthen their businesses and are performing well today.
Kurt Wilson, Centaur’s chief financial officer, said of the move, “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.”
Those efforts are heading into their eighth year. Centaur holds the state’s final racing license for a state-of-the-art harness operation and racino, but still needs approval of the Pennsylvania Gaming Control Board.
(Harness Tracks of America)