Miami Jai-Alai Files For Bankruptcy Protection
MIAMI (CBSMiami) – Not even a new casino could save Miami Jai Alai.
Its parent company, Florida Gaming Corp., has filed for bankruptcy protection in an effort to fight off foreclosure from the holder of an $87 million dollar loan, according to CBS4 news partner The Miami Herald.
Last year, Florida Gaming agreed to sell itself to a New York-based casino company, Silver Entertainment. In a stock filing Monday night, Florida Gaming Corp. said terms of a pending sale would essentially wipe out the company.
Its debt is held by ABC Funding, which has ties to a private-equity fund with interest in a Las Vegas casino.
Florida Gaming is suing both companies over its debt, and had a court impose a receiver over its operations as the 2012 suit dragged on without sign of a resolution. ABC is suing to foreclose over missed loan payments. The Miami casino opened Jan. 23, 2012, and the loan in dispute paid for adding the gambling facility.
The loan debt is dragging the facility down. In the second quarter, Florida Gaming posted a $4 million profit and casino revenues hit $19 million. But thanks to a charge related to the debt tied to the pending sale, the company posted a $22 million loss.
In a court filing, Florida Gaming executive vice president Daniel Licciardi wrote: "Miami Jai-Alai is now thriving and is a success by every measure but one: its relationship with its lender," according to the paper.
CBS4 news partner The Miami Herald contributed to this report.
