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Indiana Live parent seeks Chapter 11 loan extension

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Indianapolis Downs LLC, parent company of Indiana Live horserace track and casino in Shelbyville, wants lenders to grant a one-year extension of financing for the Chapter 11 reorganization that otherwise would expire in April.

If the extension is approved at a requested hearing on March 22, the new maturity date would be April 10, 2013. For the extension, the track would pay a fee of 1 percent of the outstanding amount of the loan.

The track says it is “still formulating the terms of a plan and discussing a possible contemplated sale process.” It expects “documents to be filed in the next few weeks.”

Indiana Live has received overtures from potential buyers, including the owner of local competitor Hoosier Park & Casino. A written offer came from Indianapolis-based Centaur Holdings LLC, which owns Hoosier Park.

Indianapolis Downs missed an interest payment in November 2010 on $375 million in second-lien notes and filed for reorganization on April 7. The reorganization begun in April 2011 is being financed with a $103.1 million loan from the existing first-lien lenders. Wells Fargo Bank NA is agent for the lenders.

The Indiana Downs track opened in 2002. The casino began operations in 2008. The permanent facility opened in March 2009, with 2,000 slot machines and electronic table games. Revenue in 2010 was $270 million.

The petition says assets are more than $500 million while debt is less than $500 million.

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