Black Gaming misses interest payment on debt load
The future of Black Gaming and its closed Oasis property in Mesquite became more precarious today.
The Mesquite casino operator missed a $5.6 million interest payment on its debt load that could trigger a default on nearly $191 million in debt in 30 days, according to a filing with the Securities and Exchange Commission.
Black Gaming has a 30-day grace period to make the payment or face a default on a $125 million loan, which would trigger a default on $66 million worth of notes that come due in 2013.
The filing, however, gave no update on the status of the Oasis, which closed its casino, restaurants and part of its 900-room hotel on Dec. 19 in a cost-saving move as an amendment to the bank agreement. The closures put 340 employees out of work.
Majority owner and top executive Randy Black Sr. has told city officials he isn’t sure what he was going to do next about the company’s financial situation, according to Mesquite Mayor Susan Holecheck.
The Oasis, however, can only hold its gaming license for 60 days and its liquor license for 90 days after closing unless Black Gaming receives an extension from the City Council, Holecheck said.
Black Gaming is not on the Jan. 27 council agenda.
The financially trouble company also owns the CasaBlanca, Virgin River and the closed Mesquite Star 80 miles north east of Las Vegas on Interstate 15.
It is also the rural town’s largest employer with approximately 1,600 workers in a population of nearly 20,000.
The company has been hurt by decreasing revenues, posting a negative cash flow $900,000 on a revenue drop of 23.6 percent in the third quarter.
Visitor volume to Mesquite last year was down 8.5 percent through November, according to the latest numbers from the Las Vegas Convention and Vistors Authority.
The city’s gaming revenue dropped 10.9 percent and average daily room rates fell 34.1 percent the first 11 months, according to the authority.
Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.
