A spokesman for Bluhm's group tells GlobeSt.com that construction on the casino, which began last December, halted July 1 after developer PITG Gaming LLC defaulted on a $200-million bridge loan. The default capped a series of financial setbacks on the project that began with rising construction costs and difficulty in obtaining refinancing, according to a news release from PGCB.

PITG, led by Don Barden, signed an agreement two weeks later giving 75% control of the project to the newly formed Pittsburgh Gaming Investors, a group led by Walton Street, Bluhm and entities controlled by Greg Carlin, CEO of Philadelphia-based SugarHouse Gaming, and Ira Lubert, co-founder of Independence Capital Partners. Barden's investor group retains 20% ownership, while a pair of Detroit pension funds owns 5%. Carlin will now serve as CEO of Pittsburgh Gaming Holdings, and will serve on the management committee of Holdings Acquisition Co. with Bluhm and Barden, CEO of Detroit-based Majestic Star Casino LLC.

Under the restructuring, a Walton Street investment fund will provide $205 million of equity, up from the $120-million infusion originally announced, the spokesman says. According to a presentation made before the PGCB on Thursday, the new cash consists of $120 million of junior preferred equity and $85 million of senior preferred equity.