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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. Many serial killer types and psychopaths work as lowly bureaucrats, just waiting to impose their wrath on a powerless person, child, or pet. Don't forget, the BTK killer was a dog catcher.

    2. If a television station wants to improve viewership, get rid of the local blackout. I was born by the brickyard, and have attended 15 or more races. I have children now, I won't attend unless circumstances are perfect. As those with growing families know, they never are. I'm always impressed that upwards of 250,000 people attend the 500. However, as a growing, or, more apt, sprawling city, Indianapolis and its immediate suburbs count almost 2.2 million. Show the race live, let the venue get a kick-back on revenues, and open-wheel racing might have a fighting chance to be relevant again. Just in time for those tax-payer lights to make sense.

    3. John Moore, I too have had the same issue recently. A property next to my house was on the Land Bank and I was interested in purchasing. When I tried to contact Reggie, I got back emails that had nothing to do with what I asked about. Actually my latest response from him was on this past Friday. I had asked about how to buy the property and if it was still available. His response to me was to contact the mayor's office to get the schedule of his appearances. (???) Hopefully the city is able to do something to fix what this guy has done, it would be nice if they would take the properties back and sell them properly so land owners like me and you mother would have a fair chance.

    4. I too work in the industry, with over 25 years of experience and your political spin has probably nothing to do with any rebranding. "Let's dress it up" would have nothing to do with the government "telling us how and what to eat." Give it a political rest. And being a producer for a radio show doesn't mean you've been involved in advertising and branding for 30 years.

    5. Ms. Morris did not understand the ways of the business world, otherwise, like the IMS, she could have petitioned the State Legislature for a handout of State Funds for her charity work. Ms. Morris should consider becoming a state lobbyist for Lemonade Stand Operators.

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