NEW YORK (Reuters) – Rhode Island casino operator UTGR Inc, which operates under the name Twin River, filed for bankruptcy on Tuesday to help restructure and eliminate its debt load, according to court documents.
The facility, which employs more than 800 people, has more than 4,700 slot machines, virtual blackjack, roulette tables, and live greyhound racing.
After paying state taxes, “Twin River’s remaining revenues are simply insufficient to fund operations and to service the interest payments on the approximately $589 million in secured debt the (company) incurred to acquire and upgrade their facilities,” the company said in a filing with the U.S. Bankruptcy Court for the District of Rhode Island.
The company said it hoped to convince the state’s legislature to eliminate a statutory requirement that it have live greyhound racing, saying the track operates at a loss.
Shortly before the bankruptcy filing, the company reached an agreement with half of its first-lien debtholders and a “substantial amount” of its second-lien debtholders that would eliminate about $290 million of debt, according to court documents.
The company listed assets of between $100 million and $500 million, and assets of between $500 million to $1 billion.
Law firm Kirkland & Ellis LLP has been hired for legal counsel, and Lazard, Freres & Co LLC has been named as investment banker and financial adviser, according to court documents.
The parent company is a joint venture of Starwood Capital Group I LLC, Kerzner International Holdings Ltd and Waterford Group LLC.
The case is In re UTGR Inc, US Bankruptcy Court, District of Rhode Island, No. 09-12418.
(Reporting by Chelsea Emery)