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August 11, 2008

Slots license process proceeding

By Nancy Lowry

The Pennsylvania Gaming Commission is still considering the slots casino license request of Indiana-based Centaur Inc.

Despite dire financial news this week that Centaur may be canceling its Pennsylvania casino development or considering selling its Valley View license, the commission has not been asked to remove the organization from its agenda.

The commission is scheduled to meet at 10 a.m. Thursday in Harrisburg.

Debtwire, a financial news service, published an article Thursday speculating that Centaur’s lenders are pushing it to abandon the local casino development to repay the lenders.

Centaur, the article said, “has been in technical default on its loans since failing to obtain a gaming license for the planned Valley View Downs slots parlor ... by a July 15 deadline.”

Unnamed sources in the article also said the tight credit market is hurting plans for Valley View. It also speculates Centaur may take on additional partners to make the project work.

In October, Credit Suisse and other lenders provided almost $1 billion to upgrade its holdings and construct Valley View.

Centaur, the Debtwire story said, is in negotiations and seeking concessions.

Centaur is still in the running, according to gaming commission spokesman Richard McGarvey.

“We have received no word that Centaur has withdrawn its application,” he said. “We will proceed with the on-going investigation, hold a suitability hearing and if everything checks out, award the license this fall.”

Centaur has requested a casino license entitling it to 3,000 slot machines for Valley View Downs a racetrack/casino complex planned for Mahoning Township.

The development is estimated at $455 million and expected to provide 1,000 construction and 1,200 part-time and permanent jobs after the facility is built.

“Centaur is continuing to negotiate with its lenders to amend its credit facility,” according to Susan Kilkenny, spokeswoman and director of corporate marketing and public relations for Centaur.

“The current uncertainty of the credit markets and the (state gaming board’s) decision not to grant Valley View Downs a conditional license by July 15 necessitated revisions to the original credit agreement,” she said in an e-mail. “Additional details will be available upon reaching a resolution.

“Speculating publicly on the outcome of those discussions would not help advance the process. Therefore, we are reserving comment until definitive information is available,” the e-mail continued.

Centaur officials did not directly respond when asked by the New Castle News if the company was denying Debtwire’s reports or if it was seeking a retraction.

The Indiana-based company is involved with developing and operating entertainment venues that include horse racing and gaming.

Centaur currently operates Hoosier Park, a racetrack/casino in Anderson, Ind., Fortune Valley Casino in Central City, Colo., and three off-track betting sites in Indianapolis, Merrillville and Fort Wayne, Ind.

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