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Casino seeks bankruptcy protection

A gambling company that focuses on jai-alai and casinos is filing for bankruptcy as they can't comply with sale terms necessary to close the deal. Florida Gaming needs $114 million to sell itself to another company. However, the price of the sale to Silver Entertainment totaled $115 million, which includes debt of $87 million from ABC Funding. While the company had been prospering and earned a profit of $4 million during the second quarter, they needed to make a payment ABC Funding part of the potential sale, which translated into a $22 million loss. However, casino earnings totaled $19 million.

One of the company executives said that the company is successful except for the relationship with ABC Funding. The company opened a casino less than two years ago and has now filed for bankruptcy protection from their lender. On Aug. 19, they reported that the sale would wipe out their business.

Florida Gaming, with locations in both Miami and Fort Pierce, also needed to pay a penalty for slot machines in operation by Hialeah Park racetrack. The competitor gained approval for 882 slot machines, which would cost them an additional $6 million. In 2012, Florida Gaming decided to sue ABC Gaming along with the parent company in Las Vegas. In turn, ABC Funding sued for foreclosure. Florida Gaming's attorney did not comment on the pending lawsuit.

Filing business bankruptcy usually involves a number of creditors and can be a complex matter. A bankruptcy lawyer may help business clients determine the best course of action and type of bankruptcy to file.

Source: Miami Herald, "Miami Jai-Alai files for bankruptcy," Douglas Hanks, Aug. 19, 2013

Source: Hispanic Business, "Florida Gaming Files for Bankruptcy", August 20, 2013