The Centaur Company, which was planning to build a new racetrack and casino just outside of New Castle has filed for bankruptcy protection this Wednesday. The Indiana Company claims this move towards bankruptcy would leave their company and their plans for the
future casino in better shape than it is now.

After Centaur failed to make their interest payments for two other casinos they operate in Colorado and Indiana, the Indianapolis-based Centaur Gaming had to file for Chapter 11 protection in Delaware. Two affiliated companies directly related to the development of casinos and harness racing tracks were also forced to file Chapter 11 protection on Wednesday.

According to Centaur officials, even local firms had to be included in the Chapter 11 filings because they needed to hold on to their harness racing licenses, and the application for a casino license that’s currently on hold. State gaming officials say that Centaur has to have financing for the race track and casino first before they will issue Centaur the license.
Centaur’s chief financial officer, Kurt Wilson, said, “This step in Pennsylvania demonstrates how serious we are in clearing the way to get the Valley View Downs project built and operating. It allows the application process to continue and reflects our deep commitment to the project.”

More than a year ago the Credit Suisse Bank took back a $995 million line of credit from the Centaur Company. With no money, Centuar officials are hunting for a new finance options and investors.

Susan Kilkenny, a Centaur spokeswoman, thinks the big break for the company could come sooner than we think.
“There is genuine and active interest from multiple parties to fund this project, and market conditions are improving,” Kilkenny said in an e-mail.

Lawrence County Commissioner Dan Vogler said he heard the same thing from company officials on a conference call earlier this week. Vogler said he heard optimism from Centaur, even as they discussed the impending bankruptcy.

Lawrence County Commissioner Dan Vogler said, “Based on what they told us, I feel pretty good about getting Valley View up and running. Their efforts are moving in a positive direction, and I agree with that outlook.”

State Rep. Chris Sainato commented, “You never want to say Chapter 11 is a good thing, but it will give them a little breathing room, and they won’t have to worry about the status of the license and the application while they restructure their business.”