Herbst Gaming, which operates a number of casinos in Nevada, is to file for bankruptcy as part of a restructuring plan arranged with lenders.
The company said that given the size and complexity of its debt structure, the most effective way of implementing its plan is via pre-arranged Chapter 11 filings.
“All of our casinos and the route business are generating positive EBITDA, even in the current challenging economic environment,” said Troy Herbst, chief executive officer of Herbst Gaming. “Our problem is a balance sheet issue; we have more debt than our operations can support.
“This agreement with our bank lenders is designed to resolve our balance sheet problem by restructuring our debt.”
