West Wendover resorts acquired by Reno firm

Friday, April 12, 2002 | 11:11 a.m.

The owners of Reno's Peppermill Casino Inc., plan to buy two West Wendover resorts out of bankruptcy, an attorney representing the company said today.

Robert Winkel, an attorney representing Peppermill, said the company has signed a letter of intent to buy the State Line and Silver Smith resorts to increase its holdings in West Wendover, located on Interstate 80 at the Utah-Nevada border.

Terms of the deal, including the purchase price, were not disclosed by privately held Peppermill. The deal is expected to close by June 30.

Winkel said the company owns several Nevada casino properties, including the flagship Peppermill, which is south of downtown Reno, and the Peppermill and Rainbow resorts in West Wendover.

The State Line and Silver Smith resorts, which have 740 rooms between them, filed for Chapter 11 bankruptcy protection in Reno in January. The 76-year-old family-owned company has been working to reorganize its finances following a $50 million renovation.

If the transaction is approved by state gaming regulators, Peppermill would own half the hotel-casino properties in West Wendover, which is dependent on drive-in traffic from the Salt Lake City market.