Majestic Star Casino Files Bankruptcy
Majestic Star Casino, a Las Vegas-based casino operator, filed for Chap. 11 bankruptcy protection this week after defaulting on $80 million in loans for its casinos and hotels in Colorado, Mississippi and Indiana. Chief executive Don Barden said the recession and competition caused the company’s financial problems but it would continue operating its casinos. According to the Associated Press, at the end of June, Majestic Star owed $750 million and was worth about $405 million. Lehman Brothers owns about $46.3 million and Goldman Sachs has $64 million in notes from Majestic Star. Majestic Star’s casinos were once well-frequented but now with gaming gaining momentum in the last decade, casinos in the middle of Colorado, Mississippi and Indiana are no longer unusual. Increased…
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