Majestic Star casino company files for Chapter 11

AP News
Posted: Nov 24, 2009 3:24 PM

Majestic Star Casino LLC is seeking bankruptcy protection after defaulting on debt obligations involving casinos and hotels in Indiana, Colorado and Mississippi.

The Las Vegas-based company made its Chapter 11 bankruptcy filing Monday in Delaware.

Company chairman Don Barden blamed its financial troubles on the recession and increased competition. He said that operations would continue at its two casinos and hotel along Lake Michigan in Gary, a casino-hotel in Tunica County, Miss., and a casino in Black Hawk, Colo.

Majestic Star said it ended June with nearly $750 million in liabilities and about $406 million in assets.

Some lenders last month declared the company in default on nearly $80 million in debt.