Bankrupt Castaways forced to close

Thursday, Jan. 29, 2004 | 4:51 a.m.

The bankrupt Castaways hotel-casino was forced to close Thursday afternoon following a U.S. Bankruptcy Court judge's order allowing creditors to foreclose on the Boulder Highway property in Las Vegas.

Nevada Gaming Control Board Chairman Dennis Neilander said that about 12 enforcement and audit officers assisted in the shutdown of the hotel and casino and that they would probably be there through the evening hours completing the closure.

The Culinary Union, which represents at least 300 workers at the Castaways, was notified of the closure just after 3 p.m. A group of union staffers met with workers at the Castaways to discuss next steps.

"We're going to do everything in our power to facilitate unemployment (benefits) from our union hall and sending (employees) out for work," Culinary organizer Kevin Kline said.

Unlike the situation involving Binion's Horseshoe, the property did not close down because union pension and welfare funds seized money from the casino, Kline said.

The property filed for bankruptcy in June.

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