To expedite its restructuring efforts and to ensure operations continue in a business-as-usual manner at existing properties, Centaur, LLC and certain of its subsidiaries
, including harness racing facility Hoosier Park Racing & Casino, Fortune Valley Hotel & Casino and additional Valley View Downs & Casino entitieshave elected to file voluntary bankruptcy petitions under Chapter 11 of the U.S. Bankruptcy Code today. Upon emergence, the company will be in a strong financial position with less debt and an improved capital structure.
Our casino, racing and hotel operations will continue without interruption, providing the same level of entertainment and service during the restructuring. Additionally, plans continue to move forward for the launch of Valley View Downs in western Pennsylvania.
“Hoosier Park and Fortune Valley are healthy, successful businesses, staffed by dedicated team members who provide an outstanding entertainment experience for our guests. We will continue to provide our guests with high-value gaming, great dining, generous club rewards, exceptional promotions and special events, and exciting racing. It will be business as usual at all properties. Customers will continue to enjoy a dynamic array of the latest slot machines with impressive payouts. For our customers and employees, we look forward to a seamless experience during the reorganization process,” said Jim Brown, General Manager of Gaming, Hoosier Park Racing & Casino, speaking on behalf Centaur’s operating properties.
Positive cash flow generated from daily operations and cash reserves are more than adequate to fund operating expenses, including supplier obligations and employee wages, salaries and benefits during the restructuring period. With respect to ongoing business relationships, the Bankruptcy Code provides administrative priority status for vendor goods and services received after the Chapter 11 filing date.
“Over the past several months, we have taken steps to bring our capital structure in line with current marketplace realities and other critical factors. It is important to understand that our corporate balance sheet is the issue, not our businesses in Indiana, Colorado or Pennsylvania. This necessary step will provide us with the financial flexibility to strongly position the company for future success. During Centaur’s 18-year history, we have taken great pride in everything we do. We are excited about our future, and we thank our guests, employees, vendors and key partners for their support as we navigate the restructuring process. It’s a new beginning to a bright future,” said Centaur Chairman & CEO Rod Ratcliff.
In conjunction with today’s petitions, first-day motions will be filed to provide for the uninterrupted payment or satisfaction of obligations to our customers, horsemen, and our employees, as well as taxes and regulatory fees. This relief will facilitate our seamless transition into Chapter 11.
“We have reached an agreement in principal with our first lien lenders and expect to file a plan with the courts in the near future with a target of successfully emerging from bankruptcy before the end of July,” said Centaur EVP & CFO Kurt Wilson.
(Centaur)