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Planned Pittsburgh casino on the brink of collapse

Planned Pittsburgh casino on the brink of collapse If the ownership changes are not approved quickly by the Pennsylvania Gaming Control Board, the Pittsburgh casino project will go down the drain, according to investor Neil Bluhm. A fast decision is needed in order to save the failed casino project, Bluhm testified before the state Senate Community and Economic Development Committee in Harrisburg. Neil Bluhm is the principal of Pittsburgh Gaming Holdings LP, the company which is trying to save the casino, after the majority holder, Detroit businessman Don Barden, failed to find enough investments to complete the casino project.

 Yesterday Bluhm said Pittsburgh Gaming had upped its equity investment to $170 million, and that the cost of the project would likely be closer to $800 million, but warned that Credit Suisse, the primary lender, had notified Barden that it was in default and could begin foreclosure proceedings. If this happens, the casino project will turn into a quagmire of lawsuits. "We need gaming board approval and closing of the financing on acceptable terms, and all this must happen quickly because it may no longer be feasible past July 30. That is a key date, when the existing construction contracts may no longer hold," Bluhm was quoted.

 Published on 07/25/2008

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