gaming:

Progressive Gaming files for Chapter 7 bankruptcy

Friday, March 20, 2009 | 1:59 p.m.

Headlines from the Vegas gaming industry

Casino supplier Progressive Gaming International Corp. of Las Vegas filed for a Chapter 7 bankruptcy liquidation this week.

The company listed assets of $263,600 and liabilities of $5.62 million.

In January, International Game Technology of Reno acquired certain operating assets of PGIC for undisclosed terms. Details of that deal were spelled out in this week’s bankruptcy filing and show IGT agreed to pay $16.237 million in cash.

In its January announcement, IGT said the global operations of PGIC would be integrated with IGT’s offices in Europe, Asia, Australia, Latin America, Canada and the United States.

IGT said the deal would complement its business because the Progressive Gaming product line is designed for somewhat different market segments than the IGT casino systems management line.

Progressive Gaming is formerly known as Mikohn Gaming. It reported a loss of $63.6 million in the third quarter ended Sept. 30 and disclosed Dec. 24 that it would auction its assets in cooperation with its senior secured lender, Private Equity Management Group Financial Corp. of Irvine, Calif.

That company was owed more than $17 million by Progressive Gaming, which reported revenue of $71 million in 2007 and $54.1 million in 2008.

Steve Green can be reached at 990-7714 or steve.green@hbcpub.com.

Discussion: 4 comments so far…

By LV4LIFE

3/20/09 at 2:57 p.m.

Suggest removal

I don't claim to know anything about corp. business but how do you run a business with a 1/4 million in assets and 6 1/2 mill. in liabilities? Thats why this country is in such terrible shape.
By goingbust

3/20/09 at 4:39 p.m.

Suggest removal

"I don't claim to know anything about corp. business but how do you run a business with a 1/4 million in assets and 6 1/2 mill. in liabilities? Thats why this country is in such terrible shape."

I was thinking the same thing. Did someone strip the business of its assets? What lender would make these sorts of loans? Or was it trade credit of some sort? Still, who would front that amount of product to a small company?
By perry161492

3/22/09 at 5:22 a.m.

Suggest removal

this won't be the last company to file for bankruptcy in this city if you look in the CONTRACTOR BOOK there whole bunch lien and bankruptcy this city is hurting i just hope who came out of state to work will go back to the family
By Mandy

3/22/09 at 2:13 p.m.

Suggest removal

I agree with you, LV4LIFE. It amazes me that everyday we hear about these huge casino corporations having financial troubles. Personally, the economy probably has a small effect on some of it, but don't you think it's bad business decisions that got some of them into financial trouble in the first place? Biting off more than they can chew? MGM Mirage comes to mind. How were these companies managing their businesses all these years? It can't be from just the drop in tourism either. Maybe it's time for all of them to start paying the piper after years of sailing along with no problems (or hiding most of them) and now it's all catching up to them.