Owner of Terrible's casino chain to seek bankruptcy

[UpInArms]

Source: Reuters

NEW YORK, March 10 (Reuters) - Herbst Gaming, owner of the Nevada-based Terrible's Casino chain, said on Tuesday it plans to file a prearranged bankruptcy case to restructure its debt obligations.

Herbst, which operates 12 casinos in Nevada including Buffalo Bill's and Whiskey Pete's, said it had reached an agreement with bank lenders holding about 68 percent of its loans on the plan.

The company, which has more than $1 billion in debt outstanding, plans to operate as normal during the restructuring. Under a prearranged bankruptcy, companies are often able to move more quickly through the court process.

Las Vegas-based Herbst said it employs about 5,400 people, and also runs a "slot route" business with almost 7,000 slot machines in grocery stores, bars and restaurants throughout Nevada. It also operates two casinos in Missouri and one in Iowa.

Read more: http://www.reuters.com/article/bondsNews/idUSN10309920090311

[tonysam]

1. This Upsets Me.

I would go to the Gold Rancho Casino on the way to Truckee if I wanted to throw a few bucks away. Well, at least the California Lottery office will still be there in back.

[itsrobert]

2. I don't think they are closing

Just trying to get rid of their debt.

[Ian David]

3. Who the hell goes broke running a CASINO? n/t

[skyounkin]

7. Donald Trump did it

[Ian David]

9. Yeah, but he's all kinds of crazy. n/t

[Downwinder]

11. Donald Trump n/t

[RollWithIt]

4. I really don't understand how a casino goes bankrupt. I mean seriously, the odds are on their side!

Seriously!

[iamthebandfanman]

5. baffles me too

i mean the entire business is based off of people buying nothing ...sure people win occasionally... but damn.

[jmowreader]

8. Here's how

A tourism-dependent business with a billion in debt outstanding is very likely to go into bankruptcy in a bad economy.

[Ex Lurker]

15. The rake is a lot less than you'd think

depending on the game, as low as 1-2%. And their other operations such as lodging, food and beverage, etc, often operate at a loss to keep people coming. So yeah, you can lose money running a casino, just like any other business.

[Lucky Luciano]

6. Odds are not on their side if they do not have enough

suckers coming in to cover their overhead which inlcudes a lot of debt in their capital structures.

Check out stock charts for the last couple years for WYNN, LVS, BYD, MGM, PENN, IGT, PNK, MPEL, etc. Taken to the woodshed!!!

[Politicalboi]

10. Ever since they changed

The machines so they don't pay out money but instead a ticket to cash I find a turn off and so does my family. We go to the Goldstrike in Jean NV. I won $3200 there last July on a machine. And when we went we noticed how empty the casino was. If people don't have money to spend the casino's are going to feel it.

[Hawkeye-X]

12. I went to Terrible's once. That casino is a HUGE dump.

Claimed to have Pai-Gow poker, when there was ZERO Pai-Gow poker tables..

spent the night watching the Broncos lose.. and that was two years ago.

[AndyTiedye]

14. But At Least the "Terrible" Part was Truth in Advertising

:patriot:

[Ex Lurker]

16. I think I've been there...

http://www.youtube.com/watch?v=rbu0PVOUT3o

[tularetom]

13. Anybody remember the old "Terrible Herbst" gas stations?

It was sort of a regional chain in CA and I think AZ maybe NV during the 50's and 60's. They were sort of an off brand station where gas was a few cents cheaper than at the name brand stations.

If this is the same outfit, not only could they not make money operating a casino. They couldn't even make money selling fucking gasoline.

[enlightenment]

17. It's the same company - and they have gas stations all over

Las Vegas. They fly MASSIVE American flags over each station and my understanding (though I'm not sure) is that the owner is a major supporter of the RNC, which is a bit odd because most casinos (and owners) veer toward the Democratic side of the house.

I don't go in the casinos and don't generally buy my fuel at their stations . . . but they do have a great car wash on the corner of Flamingo and Maryland . . .

[nolabels]

18. This is old news

Terrible News for Terrible Herbst — Herbst Gaming May Be Subprime Losers
April 4, 2008 · 2 Comments

We’re racing fans, particularly of the Baja 1000, and we admire the Herbst family, owners of Terrible Herbst Motorsports and Herbst Gaming, for the success of their race cars and their other businesses, all of which have grown from a single Chicago gas station.

So we’re sad to report that as a result of the subprime crisis and its effect on the credit and bond markets, Herbst Gaming may file for protection from creditors under Chapter 11 of the US Bankruptcy Code if it is unable to alter its payment structure for $1.14 billion in debt.

Herbst Gaming, which operates 16 casinos and 7,200 slot machines in Nevada, as well as hotel and gaming properties in Louisiana and Missouri, is privately held by the Herbst brothers, but roughly three-quarters of its debt is provided by publicly traded bonds.
(snip)
http://1031netex.wordpress.com/2008/04/04/terrible-news-for-terrible-herbst-herbst-gaming-may-be-subprime-losers/

You would think Reuters would at least put out some original stuff with all the resources they have :shrug: