Emerging from bankruptcy helped Herbst Gaming report a net income of $388.2 million in 2010.
In a filing with the Securities and Exchange Commission late Thursday, the restructured Las Vegas-based casino operator said it had an operating loss of $53.4 million for the year ended Dec. 31.
Herbst, which operates 15 casinos in Nevada, Iowa and Missouri, and a 6,000-machine slot route business, said companywide revenue decreased 5 percent to $701.1 million in 2010. Cash flow — earnings before income taxes and other charges — increased 8 percent to $77.4 million.
Herbst Gaming eliminated $808.8 million in debt through its Chapter 11 bankruptcy reorganization. The founding Herbst family lost control of the company in the bankruptcy and is no longer involved in the operation.
Court names receiver for World Market Center building
Douglas Wilson Cos. of San Diego has stepped into the position of court-appointed receiver for the World Market Center’s Building B.
Operations at the building have so far continued uninterrupted.
A court hearing has been scheduled for April 7 to put a receiver in charge of Building A, most likely Wilson. World Market Center management had defaulted on the mortgages for both buildings last year.
Throughout last year, an outside negotiator representing the lenders attempt to forge new terms to the mortgages, including $225 million on Building A and $345 million on Building B. The negotiator reported in January that major terms had been settled and the modified loan would be put in place, but lenders then sought a receiver for reasons that were not explained.
World Market Center Building C has different lenders holding a $488 million loan that does not come due until late this year.
Union organizers confront subcontractor at Plaza
Renovation work at the Plaza was briefly disrupted Friday morning when union organizers confronted a nonunion subcontractor on the job site.
At about 7 a.m., Plaza Executive Director of Human Resources Henry Terry said five members of the United Brotherhood of Carpenters and Joiners of America went up to the 18th floor of the hotel’s north tower, where people were starting work. There, Terry said, the union people "got in the faces" of the workers to argue that union members should be on the job.
Security escorted the union people off the premises after a few minutes.
Union officials did not return calls on the subject.
Due to the construction sequencing, two different carpentry subcontractors were chosen for the renovation project, which started in November. The first was a union shop that handled the south tower, which is now finished. The nonunion company started on the north tower about three weeks ago.
Valtus Capital sues N9NE Group, seeking to recover commission
Valtus Capital Group LLC has sued N9NE Group LLC and several of its affiliates in an effort to recover its commission from the sale of restaurateur Michael Morton’s share of the company.
In a lawsuit filed in Clark County District Court, Valtus alleges its was hired in July as the exclusive financial adviser to handle the transaction with a commission of 3.5 percent due upon closing. But the company said it never received its commission.
"Valtus fully performed its obligations under the engagement agreement. The engagement agreement was never terminated," according to the company’s seven-page complaint.
Valtus, which is represented by Suvinder Ahluwalia of the Las Vegas firm Sklar Williams LLP, said it did a lot of work preparing a valuation of the company and negotiating with potential buyers of Morton’s interest, including Palms owner George Maloof Jr. and N9NE Group investor Lawrence Silver of Silver Young Capital.
On Jan. 4, Morton and Maloof ended their 10-year business relationship after reaching a settlement. Financial terms were not disclosed.
Under the settlement, Maloof took over management of N-M Venture, which owns and operates N9NE Steakhouse, ghostbar, Nove Italiano, the Playboy Club, the Moon and Rain nightclubs and the Stuff store, all in the Palms.