Casino gambling company files for bankruptcy

Casino gambling company files for bankruptcy Majestic Star Casino LLC, owner of a few casinos throughout the United States, has filed for Chapter 11 bankruptcy, it announced today, making the casino gambling company one of the many casinos to seek bankruptcy protection since the recession in the U.S. began. "We are committed to continuing to serve our visitors and guests, and to providing them with the same superior hospitality, entertainment and gaming experiences that we always have. We will continue to offer our normal reward programs, events and promotions at all of our properties," Detroit businessman Don Barden, Chairman of the casino company was quoted, adding "Our senior management team is committed to making this financial restructuring successful, and we are confident that it will position the Company for a bright future."

The recession, along with the ever increasing competition, was blamed for the Chapter 11 Majestic Star Casino LLC filed yesterday in Delaware. The move was far from unexpected - the casino gambling company warned about possible bankruptcy after it defaulted on a $79 million in long-term debt. Talks to restructure the huge debt were ongoing, but failed, prompting the casino operator to seek restructuring in bankruptcy court Monday. Lehman Brothers, Goldman Sachs and Bank of New York Mellon were listed as the top 3 creditors of Majestic Star Casino LLC. The Las Vegas based company currently operates casinos in Illinois, Mississippi and Colorado. According to management, it's business as usual at all casinos managed by the gambling company.

Published on 11/24/2009