October 21, 2014
LAS VEGAS (AP) - Herbst Gaming Inc. filed a Chapter 11 bankruptcy reorganization plan Sunday.
The company says the plan will result in the Las Vegas-based company losing ownership of its 15 casinos in Nevada, Iowa and Missouri, but will let it to retain control of its Nevada slot machine route.
Company executives say they had a previously negotiated agreement with a majority of their secured lenders covering $847 million in total debt.
They say the Chapter 11 process would allow normal operations at the company's casinos and its slot machine routes to continue.
The Las Vegas Review-Journal reports that the current management team will remain in place, employees will receive pay and suppliers will be paid on a regular basis.
The filing was made in the U.S. Bankruptcy Court in Reno.