Las Vegas gaming company could be forced to file bankruptcy this week due to the missed $4 million interest payment due yesterday. Riviera Las Vegas has no plans on paying Wachovia Bank their financial obligation.
This would be the third Las Vegas gaming company forced to file this year. Riviera Holdings Corp. will face default is they don’t make their payment on the $245 million credit line held by their lender.
The Las Vegas hotel has been forced to compete fiercely with the downward trend in room rates and slowed convention attendance. They will keep their cash reserves for liquidity and the ability to meet operating obligations along with maintenance needs.
The Riviera hotel on the Strip is in the same boat with other hotel operators with falling revenue and occupancy. They reported today the hotel occupancy last year was 83.8 percent, decline 9.2 percent along with 12.5 percent less in room revenue.
Today Riviera Holdings announced a fourth-quarter net loss of $12.7 million compared to a year earlier of $6.14 million, a 100 percent decrease in funds. Revenues were $36 million or a 24 percent decline.
2007 revenue was $205.5 million compared to $169.8 in 2008.
Their decision considering Chapter 11 bankruptcy could be seen as protection by many of the Las Vegas gaming operators forced to cut rooms rates and deal with a decline in convention business.
Las Vegas gaming company could be forced to file for Chapter 11 banktuptcy this week.