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Centaur, Hoosier File for Chapter 11

March 7, 2010

Parent company Centaur and Hoosier Park have elected to file for voluntary Chapter 11 bankruptcy in order to restructure debt and will continue operations at the Anderson casino and horse racing track uninterrupted, according to Hoosier Park officials.

Saddled with a $250 million licensing fee and dealing with a sour economy, Hoosier Park and Centaur officials had been working on debt restructuring plans for months. The bankruptcy filing will also apply to Fortune Valley Hotel & Casino in Colorado and Valley View Downs & Casino in Pennsylvania, both holdings of Centaur.

"Our casino, racing and hotel operations will continue without interruption, providing the same level of entertainment and service during the restructuring," Hoosier Park General Manager of Gaming Jim Brown said in a press release.

The Indianapolis-based company said it would also continue work on its Valley View Downs & Casino projects near New Castle.

Hoosier Park general manager Jim Brown says Centaur's casinos are healthy businesses, but it has struggled to make debt payments.

Centaur last October missed a $13.4 million payment due on more than $400 million in debt. The company borrowed heavily to pay for a $250 million state license fee and $150 million in upgrades to open the Hoosier Park casino in 2008.