Dec 24 - Gaming and entertainment company Black Gaming LLC said it had reached a deal with its lenders to restructure its debt and that it would file a pre-negotiated bankruptcy petition to implement the plan.
Under the proposed deal, Chief Executive Robert Black, Chief Operating Officer Anthony Toti and others will contribute cash in excess of $17 million in exchange for a minimum of 94 percent of equity in the reorganized company.
Our problem is one of leverage; we have more debt than our operations can support, Black said in a statement on Wednesday. Our agreement with our lenders is designed to resolve this by restructuring our debt to a level our operations can sustain and to provide additional capital.
Black Gaming owns and operates CasaBlanca, Oasis and Virgin River casinos and resorts in Mesquite, Nevada.
The company's senior secured noteholders will exchange their notes for a new credit facility of $62.5 million and, at their option, either a cash payment or an equity interest not to exceed 6 percent in the reorganized entity. (Reporting by Santosh Nadgir in Bangalore; Editing by Unnikrishnan Nair)