It has been reported that a creditor for Centaur Gaming, which is looking to erect Valley View Downs in Pennsylvania, last week filed papers seeking a liquidation of the
company's racino project in order to pay back at least part of its investment in the stalled undertaking.
New Castle News has reported that the creditor in question is Wells Fargo, and that its filing is in response to Centaur’s recent Chapter 11 bankruptcy filing in federal court in Delaware. Centaur is seeking approval for a court-ordered restructuring.
According to Wells Fargo, “the costs of preserving the development of Valley View Downs as an option is consistently and materially eroding creditor recoveries.”
Wells Fargo wants the Chapter 11 bankruptcy cases of Centaur PA Land LP and Valley View Downs LP transferred to Chapter 7. If approved by the court, the move would change Centaur’s restructuring proposal to one of a liquidation of the companies.
(With files from New Castle News)