lack Gaming previously defaulted on a bank loan from Wells Fargo Foothill when cash flow fell below lender requirements. An agreement giving Black Gaming more time to boost cash flow before the bank can collect on us$ 14.9 million in debt expires March 2. But that agreement is now in default because the casino operator failed to reach a similar agreement with bondholders by February 17.
That default allows Wells Fargo Foothill to collect on the debt and could trigger collections by other lender groups. In a statement Thursday, Black Gaming said it is in discussion with debt holders. Owner Randy Black Sr. is considering selling his casinos or otherwise restructuring the company.
Bond rating agency Moody’s Investors Service lowered Black Gaming’s probability of default rating in recognition of the missed payment, saying bankruptcy was likely.