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Centaur wins approval to sell Colorado casino

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Casino and racetrack operator Centaur LLC has been authorized to sell the Fortune Valley Hotel & Casino 40 miles west of Denver.

The buyer, Luna Gaming Central City LLC, is paying $7.5 million in cash plus a $2.5 million note, less adjustments. There were no competing bids.

Centaur filed a revised reorganization plan on July 22 in which holders of $405 million in first-lien debt are slated to recover 83.3 percent from a combination of mostly new stock and debt. Holders of $207 million in second-lien debt are in line for a 1.4-percent recovery, according to the disclosure statement filed along with the plan.

Centaur, which which nearly three years ago was flying high after attracting $1 billion in investments, doesn’t believe that its assets are worth enough to pay first-lien debt in full.

Centaur LLC and 12 affiliates filed Chapter 11 petitions in March. Affiliates Centaur PA Land LP and Valley View Downs LP filed for bankruptcy reorganization in October to keep alive a project to develop a racetrack in Pennsylvania. All the companies are subsidiaries of closely held Centaur Inc., which is not in bankruptcy.

The March filings listed assets of $584 million and debt of $681 million. The newer cases resulted from the failure to make payments due in October on a $382.5 million first-lien debt and a $192 million second-lien credit. The companies have horse racing and gambling facilities in five markets in Indiana and Colorado. They were developing a property in Pennsylvania to be called Valley View Downs and Casino 55 miles from Pittsburg.

The companies own Hoosier Park, an Indiana casino and horse racetrack in Anderson, along with three offtrack betting parlors in Indiana. In addition, they own Fortune Valley Hotel & Casino in Central City, Colo., which has a 118-room hotel to complement the casino. The companies generated revenue of $277.5 million in 2009.

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  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

  3. I don't know about the rest of you but I only stop at these places for one reason, and it's not to picnic. I move trucks for dealers and have been to rest areas in most all 48 lower states. Some of ours need upgrading no doubt. Many states rest areas are much worse than ours. In the rest area on I-70 just past Richmond truckers have to hike about a quarter of a mile. When I stop I;m generally in a bit of a hurry. Convenience,not beauty, is a primary concern.

  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

  5. I have obtained my 6 gallon badge for my donation of A Positive blood. I'm sorry to hear that my donation was nothing but a profit center for the Indiana Blood Center.

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