Riviera Holdings Corporation owner of the Riviera Hotel & Casino on the Las Vegas Strip has filed for economic failure security under a pre-negotiated deal which will shift ownership of the company to senior protected lenders.
The planned reorganization plan has the support of a greater part of senior secured lenders, who hold claim under the company's $228 million credit agreement, the company thought in a statement late Monday.
In court documents, Riviera said like a lot of casinos in Las Vegas, it had been intensely affected by the slow in the U.S. economy and was facing rising isolation given the recent change along the north end of the Strip.
Riviera said throughout the recent economic boom, a lot of properties on the north Strip were sold down to make method for new high-end resorts. But, as the economy quickly decline, most of those expected new projects either halt construction or failed to start altogether, it said.
"The property of such nearby vacant lots and uncompleted project has been considerable. Although Riviera Las Vegas has smaller amount neighboring competitors, there are also less reasons for customers to undertaking to the north end of the Strip," Riviera said.
The company scheduled both resources and liability in the $100 million to $500 million range.
The company, also own and operate a casino in Colorado, said any recovery for its recent shareholders was highly suspect”. There will be no cause lying on our employees, vendors, and most highly, our customers," the company's wide-ranging counsel Tullio Marchionne said.