IBJNews

Indiana Live parent files for bankruptcy protection

IBJ Staff
April 7, 2011
Keywords
Back to TopCommentsE-mailPrintBookmark and Share

The parent company of the Indiana Live racetrack and casino in Shelbyville announced Thursday morning that it is reorganizing under Chapter 11 bankruptcy protection.

Indianapolis Downs LLC filed the bankruptcy petitions in the U.S. District Court for the District of Delaware.

Both of Indiana’s racetrack-casinos now have declared bankruptcy. Indianapolis-based Centaur LLC, owner of Anderson’s Hoosier Park & Casino, is emerging from bankruptcy after gaining approval for its reorganization plan in February.

The two borrowed heavily to pay the $250 million state-mandated slots-license fee and to build their gambling facilities. They say steep state tax bills also have dragged down results.

Meanwhile, Indianapolis Downs said in a press release that it generates enough revenue to pay expenses but is operating under a debt burden significantly greater than anticipated.

Indianapolis Downs attributed much of its financial distress to the $250 million fee.

The company’s overall debt totaled $544 million as of 2009, the most recent period available.

“This filing is unlike many debt restructuring cases because Indianapolis Downs has steadily grown its revenue and market share since operating,” said Gregory F. Rayburn, Indianapolis Downs’ chief restructuring officer, in a written statement. “Indiana Live and Indiana Downs racino is an operationally profitable but new business that has not yet achieved its full potential.”

Indiana Live brought in $244 million in 2009, according to a financial audit. But the revenue stream hasn’t been enough to cover expenses, which include massive interest payments.

At least two other operators have shown an interest in buying the struggling racino.

In November, Standard and Poor’s downgraded Indiana Live’s credit rating to D after the company missed an interest payment.



Both the racetrack and casino will continue to operate as usual during the restructuring and there should be no interruption in services, the company said.

Indiana Live’s controlling shareholder is South Bend-based Oliver Racing LLC.

 

ADVERTISEMENT

  • Step 1: Replace Screens With Real Gaming
    Get rid of the incredibly lame Electronic Screens and I will then regularly visit Indiana Live. If I want to stare at a screen to play, I'll just fire up the PS3.

    Not sure if they've added it, but a well-advertised shuttle from Indy to Indiana Live should be a must. A "captive audience" for a Casino should be something they jump on and would give an alternative to drinking and driving.

    It's a nice facility and not too far away from both Indy and Cincy. However, PLEASE lose the Screens. Electronic Gaming is cheap, unrealistic, and takes away from the feel and "liveliness" of table games.

    Blackjack and Poker on a Screen in a Casino?!?
  • Smoking
    Maybe the casinos ought to re-think their opposition to the smoking ban, may help their business. One time in a casino was enough, the no-smoking area was a joke.
  • GOP Deal in the Making
    Watch for Daniels to offer them a huge tax break/refund to keep them in business. After all, they contribute to the GOP and Mitch has a track record of taking money from con artists who felony charged friends.
  • Somethings Gotta Give
    I think it's only a matter of time before a couple of casinos go belly up. Forget the huge fee they agreed to pay and are now complaining about. There is no "right" to keep these casinos in business. There are just too many in Indiana to make a profit. The novelty has worn off and casual gamblers are saving their money.
  • Bill passes
    If Mitch's bill passes will he be able to charge the jockey a toll fee without tne legislature acting?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. Here are a few candidates for this new group, "ripped from the headlines." First up, that bizzaro State Senator Brent Waltz; secondly, the unethical Todd Huston, and his contractual arrangements scheme; Finally, but not least of all, the dishonorable Eric Turner. What sayeth you Greg Zoeller?

  2. Good day. I can't hide this great testimony that take place in my life I will love everyone to know it and be partaker that is why I always place it on answer, I am Mrs,Natalie Cuttaia by name, I live in Texas, United State Of America, I want to thank (Mr.Bruce Brandon) for his kindness upon my family life. I never knew that there is still nice lender like this on internet and earth here. Just some Months Back, I was in search for a loan of $100,000,00 as I was running out of money for feeding and rent. I was scammed $6,800 Dollars and I decided not to involve my self in such business again but a Friend of my introduced me to a loan firm due to my appearance and doings. And I told him that I am not interested of any loan deal anymore but he told me that there is still a nice lender who he will recommend me to, and I made a trial and I am most grateful lucky am I today, I was given a loan amount of $100,000.00usd, by this great Company (Bruce Brandon Loan Company) managed by (Mr.Bruce Brandon) If you are in need of a genuine or legit loan or financial assistance and you can be reliable and trusted of capable of paying back at the due time of the funds I will advice you to, contact him via: ( bruce.brandon071@gmail.com ) And you will be free from scams in the internet. All thanks to Mr.Bruce Brandon You are the one who remove me and my family out of poverty. The reason why i am doing this is that, i promise Mr.Bruce Brandon that if i truly got my loan, i will advertize his company and bring customers to his company. Contact him via ( bruce.brandon071@gmail.com )for the Loan you have been looking for..

  3. Hello, We are firm Organization formed to help people in needs of helps,such as financial help. So if you are going through financial difficulty or you are in any financial mess,and you need funds to start up your own business,or you need loan to settle your debt or pay off your bills,start a nice business, or you are finding it hard to obtain capital loan from local banks,contact us today via email mrsroseberrywilkinsfunds.usa@gmail.com So do not let these opportunity pass you by because Jesus is the same yesterday, today and forever more. Please these is for serious minded and God fearing People. Your Name: Loan Amount: Loan Duration: Valid Cell Phone Number: Thanks for your understanding to your contact as we Await Regards Management Email:mrsroseberrywilkinsfunds.usa@gmail.com

  4. The question is, where could they build a new stadium? It seems in the past year, all the prime spots have been spoken for with potential projects. Maybe in the industrial wasteland area a block past Lucas Oil? I think it needs to be close to the core, if a new stadium is built.

  5. Aldi is generally a great shopping experience. Still, I'm sure YOU wouldn't want to shop there, which I consider a positive.

ADVERTISEMENT