Riviera May Seek Bankruptcy Protection
Riviera Holdings Corp (RIV: 0.00 0.00%) reported their third quarter financial results on Monday and made no assurance that the gaming company would be able to avoid filing for bankruptcy. The owners of the Riviera hotel and casino on the Las Vegas Strip have been considering bankruptcy since March as they defaulted in credit agreements.
Documents filed with the federal Securities and Exchange Commission showed third quarter revenue at the Las Vegas Riviera dropping to $22.6 million from $30.2 million in the same quarter of 2008.
Riviera Holdings said in its quarterly financial report. “As a result of the economic factors and the defaults on the credit facility, there is substantial doubt about our ability to continue as a going concern.”
The gaming company has been in default of its $245 million credit agreement since February, as well as in default of a credit swap agreement with Wachovia. In order to avoid the filing the company continues to make attempts to renegotiate loan terms with creditors and restructure $281 million in debit.
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