Indiana Downs LLC files for bankruptcy – Horseracing news
A company related to the horse racing industry in the nation has recently felt the need to cater to its bleeding cash flow by taking protection of the bankruptcy court.
The said company is the Indiana Downs LLC which operates both a casino and a racetrack in the region of Shelbyvile.
It has now been a significant number of years that both Indiana Downs LLC’s businesses have been operational. The casino, which is popularly known as the Indiana Live Casino opened up in the month of March of the year 2009. The other business, Indiana Downs
racetrack also features races on an annual basis that generate interest of the horse racing fans.
According to the parent company of the racetrack and the casino, both its businesses are making profits and can run easily as independent units. However, the reason for bankruptcy that has been stated by Indiana Downs LLC is the high amount of debt that
it has gathered.
Gregory F. Rayburn, the chief restructuring officer of Indiana Downs LLC made the following statement regarding the filing of the company’s bankruptcy, “This filing is unlike many debt restructuring cases because Indianapolis Downs has steadily grown its
revenue and market share since opening. Indiana Live and Indiana Downs racino is an operationally profitable, but new, business that has not yet achieved its full potential…Most importantly, this process will provide Indianapolis Downs with the time we need
to enhance our enterprise value and the value of our secured lenders’ collateral.”
The amount of debt that the company has to pay which has driven it to take the extreme measure of filing for bankruptcy is more than a figure of $250 million. A major chunk of the debt that Indiana Downs has to pay off includes the payment of the license
fee to the state. Another sizeable portion of the company’s debt involves the tax that it is liable to.
Indiana Downs does not plan to abandon its businesses and is looking forward to enhancing them once the cash flow problem is solved. Horse racing at the racetrack is not scheduled to experience any change in the future so far.
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