Casino gets new owners

Matthew Claxton, Langley Advance August 24, 2010

Gateway Casinos, including Langley’s Cascades Casino, will have new owners, and $1 billion less debt, if a deal is approved next month. Catalyst Capital, a Toronto-based investment fund, will be taking over control of the firm if B.C. and Alberta gambling authorities give the final okay in mid-September. Catalyst was formerly one of the biggest lenders to Gateway, and they are essentially swapping debt for control of the company. Tennenbaum Capital, a California firm, will also be taking a larger stake in the chain of casinos, but they will not have control. As part of the restructuring, the former owners will see their share reduced to two per cent of the company. Rick Orzy, a Toronto lawyer speaking for the new ownership group, said it will be a good news story for the firm. In addition to wiping $1 billion in debt of the books of Gateway, the new owners will inject $100 million US into the company.

There are not expected to be job losses or major changes to the way the Cascades or other casinos are run, Orzy said. The company’s problems had to do with its load of debt, not with its actual casinos, he said. The newly restructured company will be much leaner, with about two thirds of its debt wiped off the books, said Orzy. Nor will the deal affect the agreement that sees an average of $6 million a year flow to Langley City coffers. “That [the contract] isn’t even directly with them, that’s with the BC Lottery Corporation,” City Mayor Peter Fassbender said.

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MGM Resorts International (MGM) Loses COO

After five years of overseeing operations at Detroit’s largest casino and the second highest revenue generator for MGM Resorts InternationalLorenzo Creighton is moving on. Reports surfaced this week that Lorenzo Creighton, President and Chief Operating Officer of MGM Grand Detroit has resigned. While, Yvette Monet, a spokeswoman for MGM Resorts International did not elaborate on when Creighton will be leaving or comment on his departure; reports have said that he will be joining another gaming venture.

Rumor has it that Creighton will be joining Gateway Casinos out of Vancouver Canada as Chief Executive Operator and hold an ownership stake. Creighton said only that his decision to leave the position he has held at MGM Grand since 2008 “was a tough decision”. “But I’m making the right move.” Creighton added.