Herbst Gaming to seek restructuring

Mar 12, 2009 7:46 PM
Staff & Wire Reports |

Officials with Herbst Gaming Inc. says the company will give up control of its casino businesses while it seeks to restructure its debt in bankruptcy court.

The Las Vegas-based company says it has reached agreement with its lenders and will file Chapter 11 restructuring plans in U.S. Bankruptcy Court later this month.

A company official says under the plan, Herbst will give up ownership of its 15 casinos in Nevada, Iowa and Missouri. But it will keep 90% control of its slot machine route operations in stores, bars and restaurants across Nevada in a holding company.

CEO Troy Herbst says the move should not affect day-to-day operations or employees.

Herbst owns casinos in St. Joseph and LaGrange, Mo.

Information from: Reno Gazette-Journal

Related Articles:
Nevada revenues hit new low
Casino revenues still in freefall
Nevada revenues continue to slide