According to an article on recordonline.com, Joseph Bernstein, Empire Resorts' newly named CEO, has stated the company's largest shareholder, Plainfield Asset Management LLC, could demand payment of $22.5 million in bonds, which could lead to Empire filing for Chapter 11 reorganization in coming months.
Empire Resorts is the parent company of Monticello Raceway. In addition to having a large stake in Empire, Plainfield Asset Management LLC is a lead investor in Tioga and Vernon Downs, which, like Monticello, is located in New York State.
"We have 12 bondholders, and there is one group that wants to own the property," recordonline.com quoted Bernstein as saying. "They say, 'You give us 80 per cent of the company or we will put you into bankruptcy.' Our position is, 'We will see you there.'"
The report also cites Bernstein as saying that no matter how things shake out over the next couple of months, he doesn't foresee any of Monticello's 344 employees being laid off.
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(With files from recordonline.com)