Northern Nevada casino companies seek Chapter 11

Published Tuesday, June 23, 2009 | 10:11 a.m.

Updated Tuesday, June 23, 2009 | 3:14 p.m.

See one of the bankruptcy filings

Headlines from the Vegas gaming industry

Several Northern Nevada casino companies controlled by businessman Harold Holder Sr. have filed for Chapter 11 bankruptcy reorganization.

The companies seeking protection Friday in the Bankruptcy Court for Nevada were:

--The Holder Group Elko LLC, operator of casinos with slot machines and table games called the Commercial Casino in Elko, the nearby Stockmen's Casino Hotel in Elko; and the Scoreboard Casino in Spring Creek.

--The Holder Group El Capitan Inc., operator of a casino with slot machines and table games in Hawthorne called the El Capitan.

--The Silver Club, formerly operating casino slot machines and table games in Sparks at the Silver Club. The debtor intends to reopen certain operations at that casino, court papers said.

--Parker's Model T Inc., operating casino slot machines and table games at Parker's Model T in Winnemucca.

Court papers say the casinos have a common secured lender, Northern Nevada Asset Holdings, which is owed $32.75 million. The debtors generally listed assets and liabilities of between $10 million and $50 million apiece.

The bankruptcy filings came after the Holder companies defaulted on the Northern Nevada Asset Holdings note and the lender moved in Washoe County District Court to have a receiver appointed to run the properties, the Associated Press reported.

"This is the best move we could make to make sure five of the six properties stay open and our employees stay on the job while Holder Hospitality Group restructures its debt," Holder spokesman Tom Clark told the Associated Press. "We don’t see the other five properties closing any time soon."

Clark said the casinos and the associated hotel operation in Elko employ about 550 people.

He said the recession produced a "perfect storm" as it reduced revenue at the properties and made it difficult to sell assets because, even as buyers were found, they were unable to gain financing.

The court filings listed dozens of creditors, ranging from local small-town vendors to big utilities and gaming suppliers based in Las Vegas, Reno and around the country.

Among the creditors are NV Energy, Southwest Gas Corp. and Young Electric Sign Co.; along with slot machine and table game suppliers International Game Technology, Bally Gaming, Konami, WMS, Aristocrat and Shuffle Master.

The Holder companies didn't list how much these creditors are owed.

Discussion: 6 comments so far…

By rejco100

6/23/09 at 10:47 a.m.

Suggest removal

It's all coming down like a House of Cards.
By goingbust

6/23/09 at 11:43 a.m.

Suggest removal

Northern Nevada Asset Holdings is going to own some small casinos soon...
By cisea

6/23/09 at 11:48 a.m.

Suggest removal

We pass by all these casinos on our way to Reno and Vegas. Why? They don't pay HELLO!!
By ajonate

6/23/09 at 1:04 p.m.

Suggest removal

With the huge gold mine operations near Elko it seemed that this region was going to be immune to the recession, but I guess not...
By galena

6/23/09 at 1:56 p.m.

Suggest removal

Should have stayed in his double-wide in Florida!! A decent group of casinos wouldn't be Chapter 11 now.
By mred

6/23/09 at 6:22 p.m.

Suggest removal

I'm calling Harry Reid's office, we need a bailout for rural Nevada, will the Nugget in Searchlight be next?