Riviera Hotel and Casino
The owner of the Riviera Hotel and Casino resort in Las Vegas has filed for bankruptcy, in an effort to restructure the company’s debt and hand over ownership to secured lenders. Tullio Marchione, general counsel for Riviera Holdings Corp (the company behind the Riviera casino resort) has suggested that by reaching an agreement with lenders, the casino operator is in the best position for the future and will provide the company with “a viable capital structure as well as additional financing”.
It’s believed that the Riviera Hotel and Casino has faced intense pressure due to the unstable economic conditions in Nevada and the United States as a whole. In particular, the operator has drawn attention to the casino’s position on the Las Vegas Strip, proposing that the Riviera is located in an area that attracts very few visitors.
A statement issued by the Riviera management has suggested that during the recent economic boom, buildings at the north end of the Las Vegas Strip (where the casino is located) were demolished to make way for new construction projects. However, after the recession ravaged the finances of businesses and consumers alike, building plans to the North of the Strip were left abandoned and unfinished. Riviera Holdings Corp believes that the empty space surrounding the casino resort has had a “considerable” impact on the company’s finances.
Riviera Holdings Corp has made clear that the bankruptcy filing will have “no effect on our employees, vendors, and most importantly, our customers”.
