Search
 

Riviera Still Eluding Bankruptcy

LAS VEGAS-Along with a terrible third quarter performance at its nameplate resort here the company reports on its efforts to cure a loan default without filing for Ch. 11 bankruptcy protection.

By Brian K. Miller | Updated on November 10, 2009

LAS VEGAS-Riviera Holdings Corp. this week reported another miserable quarter for its nameplate resort here and said it continues to work on restructuring $281 million debt such that it can avoid filing for protection from creditors under Ch. 11 of the US Bankruptcy Code. The locally based company has been in default of its credit agreement for most of the year.

Riviera Holdings own the Riviera hotel-casino in Las Vegas and the Riviera hotel-casino in Black Hawk, Co. Thanks to continued poor performance in Las Vegas, the company produced a net loss of $4.7 million in the third quarter, up from a loss of $3.5 million in the same year-earlier period, despite $1.3 million of net operating income from its Colorado property, an 8.3% increase from the year-earlier period attributable to increased casino revenue.

In Las Vegas, the company produced a loss from operations of $700,000, which is a 404% turnaround from $200,000 of income from operations in the same year-earlier period. The decrease was primarily attributed to a 25% drop in net revenue to $22.6 million from $30.2 million on an across-the-board drop in revenues. Operating margin for the property was negative at 3.1%; in the same year-earlier period the margin was a positive 0.8%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.