Centaur Gaming has failed to obtain a gaming license for Valley View facility, under construction near Pittsburgh, and in doing so it is in default on it’s loans. It is now facing pressure to make hefty repayments to its lenders. Discussions are underway regarding early repayment of the loan, and the end of the developing of the Pittsburgh facility.
So far proceedings have remained outside the courtroom, though the issue of bankruptcy was at some point raised. This appears to be a bargaining point only, since proceedings would hold the money up for eighteen months, and thus would not benefit the lenders.
Lenders are demanding immediate repayment of a large sum-at least $200 million, but without concessions and flexibility in how it spends the money, Centaur is refusing. Sale of the license for Valley View would help free up a large sum of money-potentially several hundred million thanks to the limited number available in the area, that could be used to clear this debt.
Discussions were described as a voluntary restructuring of the loan-and thus far have not set definite requirements for repayment.