Centaur files for bankruptcy

By Mary Grzebieniak

news@vindy.com

NEW CASTLE, Pa.

Centaur LLC, the Indianapolis-based parent company of Valley View Downs, has filed for bankruptcy, a move Centaur’s Chief Financial Officer Kurt Wilson termed “a positive development.”

Lawrence County Commissioner Dan Vogler, who attends meetings of the Pennsylvania Harness Racing Commission and Pennsylvania Gaming Control Board, said Monday he has confidence in Centaur’s assessment because company officials have consistently maintained they are committed to the development of the harness-racing/casino project in Mahoning Township. He pointed out that General Motors emerged from bankruptcy a more viable company and said, “That is my hope for Centaur as well.”

Commissioner Steve Craig agreed, stating Monday, “They were saddled with debt that made the project difficult to finance.” He said he hopes it will be easier now to find lenders for Valley View Downs project. He said Centaur officials had informed commissioners sometime earlier that the filing was coming.

The voluntary petition for Chapter 11 bankruptcy protection filed Friday in Delaware follows the October 2009 bankruptcy filing by Valley View Downs and two other Centaur subsidiaries.

Centaur’s Chief Financial Officer Kurt Wilson said Monday that Friday’s action, which covers the part of Centaur’s organization not included in the October bankruptcy filing, is the next step in restoring the company to financial health. He said the October filing was necessary to protect the status of Valley View Downs’ gaming application for a Category I license to operate 3,000 slot machines. That application has been pending since 2008 before the Pennsylvania State Gaming Commission. He said that plans continue to move forward for the $425 million harness racing/casino project, which would be located off U.S. Route 422 near here.

Company officials said that the organization’s other casino, racing and hotel operations will continue without interruption.

They said Centaur has an agreement in principal with first-lien holders, expects to file a plan with the courts soon and hopes to emerge from bankruptcy before the end of July.

Wilson said the filing is a necessary step for moving forward and finding lenders for the long-awaited Valley View Downs track, adding he “couldn’t be more pleased” with the progress that is being made. “This puts us in a position to clear the capital problem …,” he said.

Wilson said that the company is in weekly contact with the Pennsylvania Harness Racing Commission which has already granted a harness-racing license to Valley View Downs, but which must grant an extension in September to keep the harness-racing aspect of the project alive. He said Centaur shortly will be submitting new plans to the commission and said he looks forward to the project “getting rolling again.” He said company officials appreciate the local support for the project.

A May 2008 public hearing on the Valley View Downs slots license drew virtually unanimous support from the public. The area stands to gain millions of dollars in real-estate taxes and economic-development funds as well as thousands of jobs from the complex.