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Indiana Live owners miss interest payment

 IBJ Staff and Bloomberg News
November 4, 2010
Keywords
Arts & Entertainment, etc., Banking & Finance, Casinos, Debt, Horse Tracks, Regional News, Shelby County, Shelbyville
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Indiana liveThe owners of Indiana Live racetrack and casino failed to make an interest payment due Nov. 1 on $375 million in debt, providing additional fodder for credit analysts already worried about its financial condition.

As IBJ reported last month, the Shelbyville venue has been the subject of analyst attention given its massive debt load. All told, South Bend-based Oliver Racing LLC owes $544 million, mostly in bonds.

Moody’s Investors Service said in March that the capital structure “is not sustainable in its current form,” and analysts from ratings agency Standard & Poor's have speculated that default is imminent.

Both Indiana Live and Indianapolis-based Centaur Inc., owner of Hoosier Park in Anderson, borrowed heavily after the General Assembly in 2007 allowed the horse tracks to add slot machines in return for a $250 million licensing fee.

The slots parlors, which opened the following year, have drawn smaller crowds than projected, in part because of the recession. Centaur slid into Chapter 11 bankruptcy in March of this year and is selling off holdings in Colorado and Pennsylvania to reduce debt.

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  • No, he won't, not!
    MarkusRNovember 22, 2010 1:23 PM
    He will when he needs the state employment numbers to improve.
    Reply to CommentFlag Comment
  • No, he won't.
    SteveNovember 6, 2010 8:49 PM
    The racinos have been lobbying hard for tax credits etc almost from the day they opened to less than projected revenues. They have been turned down by Daniels and the state legislature every step of the way. Proof is the fact that Hoosier Park went into Chapt 11. No one bailed them out. So why do you think anyone would bail Live out? It's a shame you are so clueless about this.
    Reply to CommentFlag Comment
  • Mitch to Save the Day
    JimNovember 5, 2010 11:53 PM
    Don't worry, Mitch will bail them out with tax credits and tax-free incentives. He needs to step up to the plate for all they did for his campaign funds. Without the tax revenues, Mitch will be able to cut more to education and blame it on people not gambling their life earnings away. The state can't afford to fund the essential stuff when so many cronies are in need
    Reply to CommentFlag Comment

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    1. First, the Athenaeum is going to have to get past the hurdle with the Lockerbie residents and the agreement that the parcel would be residential. Second, and in my opinion, this prime piece of property should include parking, PLUS, a black box theater(s), some market rate and affordable artist housing and a plan to renovate and reconfigure the second story theater. I would negotiate to add the DeHaan property surface parking lot into the development mix, place a one story surface parking garage on the DeHaan lot on the street level (for the Dehaan tenants use during the daytime) and add a second story to the garage that would become an addition to the current second story theater and then change the direction of the theater by moving the stage across the alley and on top of the DeHaan lot parking. You can add all the stage elements that are currently missing from the Athenaeum stage to make it more attractive for use by Ballet, Opera and traveling productions. Plus, the theater changes would probably help solve some of the soundproofing issues. Alas,it does not seem to be a part of the strategic plan to conduct a study to determine best use of the property. Seems like the current plan is a quick and easy move that ignores the property best use/potential and any strategic property planning for the effect on future generations.

    2. I recall that MSA's pilings are still in the ground and hard to remove. It’s not likely any proposal will include significant underground construction/parking because of this. Start adding 2 floors of retail, 8 floors of parking and 5-10 floors of possible hotel, and/or 10-20 floors of residential, and you are at 30 floors already with possible expansion of all the uses. But then again I could be wrong.

    3. Accoriding to their website there is no deadline to the Do Not Call list. What is this article referring to??

    4. On what planet are they entitled to this largesse from the stockholders? These people make multi-million dollar salaries: Pay for your own personal travel.

    5. It matters because they're already paid enormously fat salaries: Pay for your own personal travel. Being "taxed on it" isn't a valid excuse--so what? They're still being gifted a raft of luxury perks from somebody else's money on top of an enormous, lavish salary.

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