Related Topics
Recommended Sources
About Travel Industry

BNET Travel provides daily industry trends and news coverage with insights for managers and executives into all aspects of the travel and tourism industry. In addition to detailed airline and hotel company profiles, we bring you industry analysis on new travel and carrier routes, bankruptcies, mergers, tourism figures, investments and a host of other important business issues.

Majestic Star Casino Files Bankruptcy

By Barbara E. Hernandez | Nov 24, 2009

Majestic Star Casino, a Las Vegas-based casino operator, filed for Chap. 11 bankruptcy protection this week after defaulting on $80 million in loans for its casinos and hotels in Colorado, Mississippi and Indiana. Chief executive Don Barden said the recession and competition caused the company’s financial problems but it would continue operating its casinos. According to the Associated Press, at the end of June, Majestic Star owed $750 million and was worth about $405 million.

Lehman Brothers owns about $46.3 million and Goldman Sachs has $64 million in notes from Majestic Star.

Majestic Star’s casinos were once well-frequented but now with gaming gaining momentum in the last decade, casinos in the middle of Colorado, Mississippi and Indiana are no longer unusual. Increased competition for the casino dollar will continue, so the only real thing that can change is the recession. I think we all know that the recession isn’t letting up soon (I’m betting 2012) and credit markets will not loosen before it does. If Majestic Star can hold on for another few years it may be able to get out of debt, but if not, it’s likely to go the way of the bingo parlor.

Tags: Recession, Casino, Bankruptcy, Majestic Star, Litigation, Personal Finance, Business Operations, Barbara E. Hernandez

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and also blogs about personal finance and technology for AOL Money & Finance's WalletPop. Barbara can also be followed on Twitter at bhern.

BNET User Analysis

Voice your 2cents
Web Buzz:

  • Wynn Resorts leads in race to list in HK

    Financial Times - 203 days 4 hours 32 minutes ago

    A Las Vegas-based casino company has taken the lead in a race to become the first international casino operator to list in Hong Kong, taking advantage of renewed investor appetite for stocks with links to the world's biggest gambling market. Wynn Resorts, controlled by Steve Wynn, hopes to float a minimum 25 per cent interest in its Macao...

  • Wynn Resorts leads in race for HK listing

    Financial Times - 203 days 4 hours 32 minutes ago

    A Las Vegas-based casino company has taken the lead in a race to become the first international casino operator to list in Hong Kong, taking advantage of renewed investor appetite for stocks with links to the world's biggest gambling market. Wynn Resorts, controlled by Steve Wynn, hopes to float a minimum 25 per cent interest in its Macao...

  • Wynn Resorts upbeat about Hong Kong IPO

    Financial Times - 139 days 9 hours ago

    The Hong Kong initial public offering of Wynn Resorts’ Macao operations will help the Las Vegas-based group realise its aspirations of becoming “more of a Chinese company”, according to Steve Wynn, its chairman. Wynn Resorts will raise up to $1.6bn by selling a 25 per cent stake in its Macao operations, as it becomes the first...

  • Wynn Resorts in HK casino assets IPO

    The Australian - 142 days 7 hours 47 minutes ago

    LAS Vegas-based casino operator Wynn Resorts plans to raise up to $US1.6 billion ($1.85bn) in a Hong Kong initial public offering of its Macau assets, a person familiar with the situation says

  • Hooters Hotel and Casino May File Chap. 11

    BNET Travel - 85 days 22 hours 35 minutes ago

    The owner of the Hooters Hotel and Casino in Las Vegas reported a $5.37 million loss in its third quarter and could file Chapter 11 bankruptcy

 
Reply to Story

BNET TalkbackShare your ideas and expertise on this topic

Subscribe to this discussion via Email or RSS

  •  
    1

    olvin420

    12/22/09 | Report as spam

    RE: Majestic Star Casino Files Bankruptcy

    I just want to convey that Increased competition for the casino dollar will continue, so the only real thing that can change is the recession.

    Webmaster
    http://vegas-is-here.com/

  •  
    2

    obgyn

    01/01/10 | Report as spam

    RE: Majestic Star Casino Files Bankruptcy

    Barden is failing because he trust too many of the wrong people to run his Casinos.
    Instead of trying to be the big man on campus, he needs to get in there and see what is going on like Trunp does. Trump doen not just take the word of people managing his businesses, he checks thing out un-announced.

    Barden has people working for him who are sabotaging his business.

    There are things going on at his
    Vegas property that he has no clue of, and it's running the place into the ground.

    They will be Bankrupt soon if he is not careful.

Please add your comment:
  1. You are currently: a Guest |
  4.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

Brett Snyder

Travel Analysis

Brett Snyder & Barbara E. Hernandez

More Posts
advertisement
Industry Transcripts by Seeking Alpha

Brought to you by CBS MoneyWatch.com

advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Archives