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Riviera files for bankruptcy
Riviera Holdings, owner and operator of the Riviera Hotel and Casino in Las Vegas, US, has filed for bankruptcy.
The company, which also owns the Riviera Black Hawk Casino in Black Hawk, Colorado, filed for protection under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Nevada. It hopes that through bankruptcy it will be able to restructure its debts, provide for investment of new capital and emerge in an improved financial and operational position.
Tullio Marchionne, secretary and general counsel of the company, said: "After extensively considering various alternatives and consulting with our advisors, we have concluded that the company and its customers, employees and creditors are best suited at this time by proceeding with these Chapter 11 filings.
"By agreeing with our secured lenders in advance, we will be able to proceed with an expeditious restructuring through bankruptcy which will provide us with a viable capital structure, as well as additional financing.
"We, like many others in the gaming industry, have been affected by the current economy. However, both our Las Vegas and Black Hawk properties are generating positive free cashflow and this, combined with our cash balances, will help ensure that we continue to pay all our operating costs on a timely basis and fund maintenance capital expenditures. There will be no effect on our employees, vendors and most importantly, our customers."
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