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May 18, 2021

Casino Misses Loan Payment
The owners of Indiana Live casino and racetrack in Shelbyville failed to make a November 1 interest payment on $375 million in second-lien notes. The payment default caused Standard & Poor's to lower the rating on the first-lien credit by three notches last week to CCC-.

Seven months ago another credit analyst, Moody's Investors Service, said Indiana Live's capital structure "is not sustainable in its current form." At the time, Moody's lowered Indiana Live to a Caa3 rating with a negative outlook, a junk bond rating just a few notches above its lowest classification. Moody's warned of a high probability that the operation would default on its loans.

Despite Indiana Live's ongoing financial struggles, a state gaming commissioner said in April that he isn't concerned yet. Bond ratings across the gambling industry, particularly in Indiana, are all low, he said.

"It's an institutional hazard right now in gaming. We don't get overly anxious when it occurs. It's regretfully almost expected, anymore," the commissioner said. "We have no information to lead us to believe they're imminently in any financial distress."

However, the commissioner said if Indiana Live's owners can't restructure their debt and want to get out of the gambling business, there will be plenty of potential buyers.

In the meantime, our local government officials continue to burn through their allotment of racino funds. The city even dedicated several million dollars of future racino revenue for the new spec building at Intelliplex Park.

In addition, Indiana Live owes cash-strapped Shelby County government over $1 million in property taxes. Their spring property tax installment was paid a few months late and their fall installment is due November 10 at the courthouse.

Reader Comments

Posted: Wednesday, November 10, 2010
Article comment by: agree

i agree , if we just had a couple more republicans in our local regime all these schemes involving casinos,sewage plants and spec buildings would work..

of course one or two more cops using our school system as their dating pool would be nice too.

Posted: Wednesday, November 10, 2010
Article comment by: Blame

It's not hard to believe that our local government is going through this money so quickly. I blame Obama and his socialist cronies that are in our local government. If only we had more Republicans in town...

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