Investors cover racetrack’s short-term debts

Wednesday, Feb. 9, 2000 | 8:42 a.m.

Officials of SunRay Gaming, which runs the track, have declined to reveal how much money was raised. But they say they will be able to pay their bills, including lease payments to San Juan County.

The track also will be able to absorb the costs of a longer race season, company president Ray Walters said Tuesday.

The state Racing Commission last month postponed granting SunRay racing dates for this year until the commission received additional information on the track's financial situation.

Julian Luna, the commission's executive director, said SunRay recently provided the board with information about the company's capital infusion.

The commission will likely hear SunRay's license request at its regular meeting in Albuquerque on Feb. 23, Luna said.

Commissioners were worried about SunRay's $2.9 million debt. Walters admitted that the company did "get into a cash flow crunch" in January, but he said casino revenues and the recent cash infusion will cover $1 million owed in short-term debt.

Another $1.1 million is owed to equipment vendors in installment payments over the next 18 months, Walters said.

"For a company doing $22 million in revenue, that amount of debt is not excessive at all," Walters said.

The commission is requiring SunRay to run horses 41 days this year; last year's race schedule had 28 days. The lengthened season will cost the track an additional $260,000.

SunRay will try to bring in more revenue this year by attracting more people to the races and the casino. Last year, only 25,000 attended the races; the company had expected 80,000.

With more publicity and a larger purse structure, SunRay officials have said they believe attendance will be higher this season, which is tentatively scheduled to begin Sept. 7.