Bally Hands 2 Casinos to Creditors
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CHICAGO — Bally Manufacturing Corp. said Tuesday that it will turn over control of its two Nevada hotel-casinos to creditors in a debt-for-equity swap aimed at keeping the foundering gaming company out of bankruptcy court.
Chicago-based Bally will continue to manage the Las Vegas and Reno properties on a contract basis, the company said in a statement.
Bally President Richard Gillman said the deal, which is subject to approval by Nevada gaming authorities, creditors and the courts, would have no effect on the day-to-day operation of the Nevada facilities or on Bally’s two hotel-casinos in Atlantic City.
“Bally is committed to its employees and the state of Nevada, and is looking forward to a long, continued, profitable presence there,” Gillman said.
Chairman Arthur M. Goldberg said the transaction would eliminate $400 million of debt from Bally’s balance sheet and allow the casinos to use their cash flow for needed improvements.
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