The Riviera Hotel & Casino Files for Bankruptcy Protection
Riviera Holdings Corp. RVHL.PK, the owner of Riviera Hotel & Casino, located on the northern strip of Las Vegas, filed for bankruptcy protection under a Chapter 11 petition. The decision to file for bankruptcy was part of a pre-negotiated deal that will transfer ownership of the company, Riviera Holdings, to senior secured lenders.
According to court papers, Riviera attributed its financial downfall to the slowdown in the economy and recent developments along the Las Vegas strip. During a period of economic boom, many properties of the north part of the strip were either torn down or sold to make way for new, high-end resorts. However, because of the turn in the state of the economy, the construction on many of the new projects were either halted or did not start at all.
In its Chapter 11 petition, the company listed both assets and liabilities in the $100 million-$500 million range. Riviera, who also owns a casino in Colorado, said recovery for its current shareholders was highly unlikely.
A Chapter 11 Bankruptcy is another type of consumer bankruptcy that is a reorganization used mainly by businesses or individuals who are involved in large businesses.
Greg Gilbert
Keith Maynard
