NEWS
Hoosier Park owner Centaur files for bankruptcy
Posted: Monday, March 08, 2010 11:33 AM
by Frank Angst
Citing a heavy debt load, Hoosier Park owner Centaur LLC has filed for bankruptcy in Delaware.
Several subsidiaries of the Indianapolis-based company also filed for Chapter 11, including Hoosier Park Racing and Casino. But Centaur executives said the Anderson, Indiana, track and casino will continue with its usual operations.
“We will continue to provide our guests with high-value gaming, great dining, generous club rewards, exceptional promotions and special events, and exciting racing. It will be business as usual at all properties,” said Hoosier Park General Manager Jim Brown. “For our customers and employees, we look forward to a seamless experience during the reorganization process.”
Centaur filed for Chapter 11 protection on Saturday in the United States Bankruptcy Court for the District of Delaware. That same court currently is hearing the Chapter 11 case of racetrack owner Magna Entertainment.
Centaur owned 38% of Hoosier Park in 2006 when it purchased Churchill Downs Inc.’s majority interest in the track. The second-largest creditor named in the Chapter 11 case is Churchill, which is owed $15-million.
Another racing-related creditor is the Indiana Horse Racing Commission, which has a claim of $425,212.
Centaur also owns Fox Valley, a Colorado hotel and casino. The company said it will move forward on construction of a planned Standardbred racino operation in Lawrence County, Pennsylvania, named Valley View Downs.
In October analysts lowered the company’s rating after it missed $13.4-million in interest payments on $400-million in debt. The company said that while positive cash flow at its properties will cover operating expenses, it needs to restructure.
“Over the past several months, we have taken steps to bring our capital structure in line with current marketplace realities and other critical factors. It is important to understand that our corporate balance sheet is the issue, not our businesses in Indiana, Colorado or Pennsylvania,” said Centaur Chairman Rod Ratcliff. “This necessary step will provide us with the financial flexibility to strongly position the company for future success. During Centaur’s 18-year history, we have taken great pride in everything we do. We are excited about our future, and we thank our guests, employees, vendors and key partners for their support as we navigate the restructuring process. It’s a new beginning to a bright future.”
The company said it hopes to emerge from bankruptcy by August.
Frank Angst is senior writer of Thoroughbred Times
