Ormsby owners file for bankruptcy protection

Wednesday, Feb. 12, 1997 | 11:59 a.m.

As the bankruptcy petition was filed Tuesday in Reno, embattled Ormsby House owner Barry Silverton resigned as director, president and chief executive officer. Bruce Dewing, hired last spring as general manager, assumed those roles.

Dewing also applied to the state Gaming Control Board for the Ormsby House's full casino license - hoping to keep the club open when Silverton's license expires next week.

Dewing said his new title and the Chapter 11 filing should keep the Ormsby House under local control and open for business. It also would allow Dewing to continue trying to sell the property.

The Chapter 11 filing is the second for the Ormsby since 1990, and the latest move in what have been many turbulent months for the club.

Since it reopened in February 1995, the hotel-casino has been dogged by state fines, layoffs, lawsuits for nonpayment of bills and other hassles.

The attempted comeback came to a head in December when the Control Board threatened to revoke Silverton's license over accusations of mismanagement.

The bankruptcy action negates foreclosure proceedings scheduled Wednesday in Carson City District Court. Those proceedings had started when Cerberus Partners filed a notice of default because Silverton didn't make his January payment on a $5.5 million loan.

Cerberus and former Lt. Gov. Bob Cashell had submitted an application to the Control Board to transfer the license to Cashell, who would operate the casino while it was in receivership.

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