Tamares Group managing director Michael Treanor addresses Nevada gaming regulators on Wednesday. Photo by Gary Thompson.

Barrick Gaming's majority partner needs to infuse $10 million into the operations of four downtown casinos so the company can meet its payroll and pay vendors, Nevada gaming regulators were told Wednesday.

During an emergency double hearing by the state's two casino regulatory panels, Tamares Group, a privately held international investment company, was given permission to transfer up to $10 million into the four downtown casinos over the next 60 days.

Michael Treanor, Tamares' managing director, told members of the State Gaming Control Board and Nevada Gaming Commission, the total investment has a 20 percent built-in cushion should Barrick require additional money. He said $2 million would be transferred immediately to the casino operator with the remaining amount being paid out as needed.

"Our understanding is that the money will be used for payroll and operational expenses," Treanor told the control board. "If we need to put additional money into the operation, we will. We've already put $110 million into the deal."

Barrick employs more than 1,900 workers in its downtown operations.

Tamares announced Monday it was buying Barrick's 23 percent minority stake in the Plaza, Gold Spike, Las Vegas Club and Western Hotel and would eventually remove Barrick as managing partner.

The two gaming panels, meeting via teleconference in Las Vegas and Carson City, took less than 90 minutes to approve the cash infusion by Tamares.

Barrick was licensed 15 months ago to operate the casinos, which it purchased with Tamares' help from casino pioneer Jackie Gaughan for $82 million. Company executives talked of ambitious plans to renovate and expand the older properties, which make up 15 percent of downtown's casino base.

The company, through President Stephen Crystal and Chief Operating Officer Phil Flaherty, will continue to run the casinos until the Navegante Group, headed by long-time casino figure Larry Woolf, is licensed to operate them.

"We're hopeful this will be done sooner, rather than later," Treanor said of the agreement reached with Navegante last week.

Woolf, who attended the hearings as an observer, said the casinos have potential.

"I've been through them quite a bit and they're not that bad," Woolf said. "(Barrick) cleaned them up and has been trying hard."

During the hearing, Treanor said Barrick missed several interest payments with mortgage holders and that Tamares stepped in and paid off two loans totaling $40 million. A $45 million loan is still outstanding but Treanor said the company has an agreement on interest payments with the lender.

Control board member Bobby Siller directed several pointed questions toward Treanor and Crystal to ensure they understood their roles in the temporary arrangement.

"I wanted to make sure people knew there would be no major changes in the casino operations during the 60-to-90-day window (until Navegante is licensed)," Siller said after the hearing. "Everybody needed to be on the same page."

Siller said the quickly organized special hearing was necessary because Barrick would have had trouble paying its employees without help from Tamares.

"The upcoming payroll was in jeopardy if we did not go through with these hearings, no question about it," Siller said. "Vendors would probably cease (doing business with the casinos) if we didn't hold these hearings."

Crystal wouldn't say if Barrick was having trouble meeting payroll.

"Basically, in every operating business the summer months are slow and, normally, what partners would do is to infuse capital for payroll," Crystal said. "Because we did the purchase and sale agreement, the infusion is coming through this mechanism."

Siller said he hoped another operator will undertake Barrick's plans for redeveloping the downtown casinos.

"When we examined this, we found that the casinos were somewhat profitable," Siller said. "There was a tremendous amount of overhead. I can't get into details, but under the right management and the elimination of a considerable amount of overhead, I think these properties will be profitable and, perhaps in the future, they will be able to go forward with those plans."

Despite being unable to complete Barrick's ideas for downtown, Crystal said company leaders were happy with its attempt to revitalize the area.

"We've done some good things to move the downtown story ahead, so in our books, that's a success story for us, " Crystal said.

Because it's a privately held company and it already has more than three-quarters ownership of the casinos, Tamares' additional purchase isn't subject to Nevada regulatory approval, unless the company decides to seek licensing to operate the gambling halls.

Treanor, who is based in New York but now plans to spend three days a week in Las Vegas, said the company is exploring its position as a significant downtown landlord. As part of the purchase, Tamares picked up more than 40 downtown real estate parcels and two smaller properties, the Hotel Nevada and the Queen of Hearts.