LV operator considers property sell-off

Wednesday, March 22, 2000 | 10:23 a.m.

Las Vegas-based Fitzgeralds Gaming Corp. is considering selling off some of its casino properties to reduce debt.

In its annual report, filed Tuesday with the Securities and Exchange Commission, Fitzgeralds said it is discussing a restructuring of the company "that may include the sale of some or all of the company's properties."

The company halted interest payments on $205 million in senior secured debt in June 1999, putting Fitzgeralds into default. To date, the company has missed $27.2 million in interest payments.

The company said it is discussing the asset sale plan as part of its discussions with a committee representing a majority of its bondholders.

In July, Fitzgeralds said it was considering bankruptcy protection as part of a reorganization plan -- a plan that did not include "any material sales of assets by the company." However, Fitzgeralds makes no mention of a potential bankruptcy in its most recent filing.

Fitzgeralds absorbed $2.2 million in restructuring costs in 1999, the company said.

Fitzgeralds owns and operates casinos in downtown Las Vegas, Reno, Tunica, Miss., and Black Hawk, Colo.