Riviera Holdings warns of possible bankruptcy

Mar 31, 2009 11:24 PM
Staff & Wire Reports |

Casino operator Riviera Holdings Corp. says it will miss a roughly $4 million interest payment and may be headed into bankruptcy.

The owner of the Riviera hotel-casino on the Las Vegas Strip and the Riviera Black Hawk in Colorado says it can't make a payment due Monday on its $245 million credit facility.

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The company says its accountant has "substantial doubt as to our ability to continue as a going concern."

Riviera Holdings reported a net loss of $12.7 million for the fourth quarter of 2008, or $1.02 per share. It lost $6.1 million, or $0.50 per share, in the same period in 2007.

Revenue was down 24 percent, to $36 million.

Company stock was down 30 percent, at $1.03, in afternoon trading.