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Jan. 15, 2009
Copyright © Las Vegas Review-Journal

Black Gaming misses interest payment on debt load

By ARNOLD KNIGHTLY
LAS VEGAS REVIEW-JOURNAL

The future of Black Gaming and its closed Oasis property in Mesquite became more precarious today.

The Mesquite casino operator missed a $5.6 million interest payment on its debt load that could trigger a default on nearly $191 million in debt in 30 days, according to a filing with the Securities and Exchange Commission.


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    • Black Gaming has a 30-day grace period to make the payment or face a default on a $125 million loan, which would trigger a default on $66 million worth of notes that come due in 2013.

    The filing, however, gave no update on the status of the Oasis, which closed its casino, restaurants and part of its 900-room hotel on Dec. 19 in a cost-saving move as an amendment to the bank agreement. The closures put 340 employees out of work.

    Majority owner and top executive Randy Black Sr. has told city officials he isn’t sure what he was going to do next about the company’s financial situation, according to Mesquite Mayor Susan Holecheck.

    The Oasis, however, can only hold its gaming license for 60 days and its liquor license for 90 days after closing unless Black Gaming receives an extension from the City Council, Holecheck said.

    Black Gaming is not on the Jan. 27 council agenda.

    The financially trouble company also owns the CasaBlanca, Virgin River and the closed Mesquite Star 80 miles north east of Las Vegas on Interstate 15.

    It is also the rural town’s largest employer with approximately 1,600 workers in a population of nearly 20,000.

    The company has been hurt by decreasing revenues, posting a negative cash flow $900,000 on a revenue drop of 23.6 percent in the third quarter.

    Visitor volume to Mesquite last year was down 8.5 percent through November, according to the latest numbers from the Las Vegas Convention and Vistors Authority.

    The city’s gaming revenue dropped 10.9 percent and average daily room rates fell 34.1 percent the first 11 months, according to the authority.

     

    Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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    pam wrote on October 28, 2009 02:31 PM: new rumor casablanca closing 11/25/09 is this true


    think outside the box wrote on January 16, 2009 10:10 PM:
    one sure way to bring customers in
    is to bring back the 49 cent breakfast
    of old las vegas.

    don't believe it.

    try it and $ee.


    MOLLIE wrote on January 16, 2009 01:35 AM: I WORKED AT VIRGIN RIVER AND LOVED MESQUITE. BUT RANDY BLACK IS THE ONE TO BLAME. FOR ALL HIS CUSTOMERS GOING TO EUREKA. HE TOOK AWAY THE PERKS THAT HAD THE PLAYERS COMING FROM ST GEORGE. AND THE SPECIALS FOR TRUCK DRIVERS.THEN HE STARTED ON HIS EMPLOYEES TAKEING AWAY BONUS, PTO DAYS.AND WHEN HE STARTED CUTTING HOURS I MOVED BACK TO PRIMM. AND NOW WE ARE IN TROUBLE.SO MR. BLACK ENJOY YOUR PERKS BECAUSE YOUR EMPLOYES ARE NOT.


    Julie wrote on January 15, 2009 09:58 PM: Ha! Ha! I love it. The Black's are HISTORY.


    S wrote on January 15, 2009 05:13 PM: Ken, you should care about Mesquite. We contribute economically to Clark County. On a positive note, we love our Las Vegans who stop and stay in our beautiful community. Even if it is only for fuel. Plus, we love our SnowBirds. They are the best in the country!


    Ken wrote on January 15, 2009 04:51 PM: *yawn*

    Who really cares about Mesquite? It really could vanish and the only people who would notice are those who cross into Nevada from Arizona with their gas light blinking.


    ET wrote on January 15, 2009 04:43 PM: Sign of the times.I prefer the ticket machines,have an iPhone too.The problem is folks don't have any extra money to blow on gaming,you know ,the kids need shoes.Good Luck,Mr Black,we all need it.


    tw wrote on January 15, 2009 04:37 PM: This guy has managed himself into banktruptcy...well deserved.


    ex gambler wrote on January 15, 2009 04:20 PM: There used to be many of the old machines at the casinos in Mesquite, but now most are of the new ticket-in ticket-out variety. Just like Vegas so why bother to go to Mesquite for the same product as Las Vegas? Maybe, that is the reason Black Gamings competition is doing better than they are as the Eureka still has many of the old machines. Do ya think? Check out casinos that have both and you will see more action on the old machines versus the ticket-in variety. Casino bosses, have you taken notice?